Supervalu stock falls on warning from CEO
Minneapolis / St. Paul Business Journal - by Devin Henry Staff Writer
Supervalu Inc.’s stock was down 13 percent Wednesday after the company warned that its first-quarter earnings would fall “substantially” short of analyst estimates.
The Eden Prairie-based company estimates identical store sales will be “approximately negative three percent” for the first quarter, CEO Craig Herkert said in a press release.
“Since providing guidance on our fourth-quarter earnings call, consumers have become more value-focused and cautious in their spending, which has pressured sales and margins greater than anticipated,” he said.
Analysts had predicted earnings of 65 cents per share for the first quarter, according to Thomson Reuters. Official numbers for the company will be released on July 28.
Shares of Supervalu (NYSE: SVU) were down $2.04, or 13 percent, to $13.65 in late afternoon trading.
dhenry@bizjournals.com | (612)288-2109
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