MINNEAPOLIS -- Supervalu here reported increased sales for the 12- and 40-week periods ended Dec. 3. However, the wholesaler posted a loss related to a previously-announced $244 million pre-tax charge it said it incurred to pay for its Supervalu Advantage program.
300 positions, to cover costs of the program.
Sales were up 6.5% to $3.9 billion for the quarter, and 3.5% to $12.7 billion for 40 weeks. Same-store sales declined 1% for the quarter.
Supervalu also recorded an after-tax credit of $40.8 million in the quarter to reflect a favorable Internal Revenue Service settlement related to the 1991 sale of 54% of ShopKo Stores.
The items reduced third-quarter income by $118 million, or $1.66 per share -- resulting in a loss of $84.1 million, or $1.18 per share, the company said.
Gary Vineberg, an analyst with Merrill Lynch, New York, questioned the connection between the restructuring and the Advantage program.
"It's a bit of a stretch to say the restructuring charge is there to implement Supervalu Advantage," he said. "Earnings have come down a lot, and there continues to be serious weakness in the ongoing business. Clearly, operations are in need of restructuring -- the business just isn't there to support the number of stores they have and the amount of people they have."
Food distribution sales for the quarter were $3.5 billion, up 4% from last year. Retail food sales were $1 billion, up 21%.
