Supervalu Q1 Profit Rises; To Exploring Save-A-Lot Spin-off - Quick Facts

(RTTNews) - Grocery retailer Supervalu, Inc. (SVU) reported that net earnings for the first quarter grew to $61 million or $0.23 per share from $43 million or $0.17 per share in the prior-year quarter, which included $0.01 per share of loss from discontinued operations.

On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $0.20 per share for the quarter. Analysts' estimates typically exclude special items.

Total net sales for the quarter grew 2.7 percent to $5.41 billion from $5.26 billion in the same quarter last year. Wall Street analysts had a consensus revenue estimate of $5.39 billion for the quarter. Sales increase across all operating segments.

Separately, Supervalu announced that it is exploring a separation of its Save-A-Lot business, and that as part of that process it has begun preparations to allow for a possible spin-off of Save-A-Lot into a stand-alone, publicly traded company.

The company has not set any specific timetable for a separation and there can be no assurance that a separation of Save-A-Lot will be completed or that any other change in the company's overall structure or business model will occur.

Supervalu has engaged Barclays and Greenhill to serve as financial advisors, and Wachtell, Lipton, Rosen and Katz as legal advisor, in connection with this possible separation.