I meant to post this yesterday (when the info came out) but internet kept fluctuating. AT&T can’t figure it out and they’ve been replacing everything like crazy (great, great, great service – try getting that from Comcrap). Anywho, here’s the wire on the story, clipped from the Trib:
Jewel-Osco parent Supervalu says it had a steep loss of $1.47 billion in the fiscal second quarter due to charges tied to a labor dispute at its Shaw’s chain and employee-related costs. Adjusted to exclude the charges, earnings totaled $59 million, or 28 cents per share. That is a penny shy of the 29 cents a share analysts expected.
Revenue fell 9 percent to $8.66 billion. Analysts predicted $8.74 billion.
Supervalu Inc., based in Eden Prairie, Minn., also lowered its full-year earnings expectations. It now expects adjusted fiscal 2011 earnings of $1.40 to $1.60 per share, from prior guidance of $1.75 to $1.95. Analysts expect $1.69 per share.
The company’s shares fell 4 percent in premarket trading.
Supervalu, one of the weaker grocers going into the recession, has struggled with intense competition and finding the balance between customers’ need for low prices and fluctuating food costs.
My Note: This 2nd quarter loss comes after the 40% fiasco otherwise known as the 1st quarter. Just how much money do they have to throw at that Wal-Mart ex-CEO before he gets the boot? Jewel is turning into the Cubs of the grocery world! Any thoughts or comments on things they could be doing differently? I mean besides dumping the new guy and getting rid of that crappy “value” line. fake cheese….
Perhaps not popular recommendations. Install all Uscans, eliminate cashier positions. Decrease prices on Peapod to grab at the segment of the market that is increasing their wealth in spite of this market then redeploy those cashiers as Peapod pickers and/or drivers. Otherwise, feel the effects of an impending GD 3.
2, sorry.