Supervalu Cuts FY Adj. EBITDA Outlook

(RTTNews) - Supervalu Inc.(SVU) said that it lowered its outlook for full-year adjusted EBITDA. Although recently announced new business in its Wholesale segment is expected to begin to positively contribute to results later this fiscal year, second quarter business performance in its Retail and Save-A-Lot segments has been softer than previously anticipated. Full year adjusted EBITDA is now expected to be approximately 5.0% lower than last year.

The second quarter performance of the Company's Retail segment has been impacted to a greater than anticipated degree by competitive openings and a challenging sales and operating environment for its stores. The second quarter performance of the Company's Save-A-Lot segment has been impacted by deeper levels of deflation as well as lower levels of SNAP (supplemental nutrition assistance program) benefits compared to the first quarter. These factors affecting the Retail and Save-A-Lot segments are expected to impact the second half of the fiscal year as well.

In addition, the second quarter performance at Save-A-Lot has been impacted by an aggressive roll-out of store resets which is expected to benefit results at Save-A-Lot later in the year.

The company now expects the second quarter identical store sales percentage for its Retail stores and for Save-A-Lot's store network will be lower than the first quarter identical store sales percentage. The Company's second quarter ends September 10.