GRAND RAPIDS, Mich. - Food solutions company SpartanNash (NASDAQ: SPTN) today reported its financial outcomes for the 16-week first quarter ended April 20, 2024.
The company announced a net sales decrease of 3.5% to $2.81 billion, which fell short of the analyst consensus estimate of $2.86 billion. Adjusted EPS for the quarter was $0.53, aligning with analyst projections.
Comparatively, the first quarter results showed a decline in revenue from the same quarter last year, which was $2.91 billion. The decrease in sales was attributed to lower volumes in both the Wholesale and Retail segments, with Wholesale segment net sales down 3.4% to $2.01 billion and Retail segment net sales falling 3.6% to $792.2 million.
Comparable store sales also saw a decrease of 2.5%. Despite the decline in sales, net earnings per diluted share increased to $0.37 from $0.32 in the prior year's first quarter, primarily due to a higher gross profit rate, including lower LIFO expense and benefits from the merchandising transformation.
SpartanNash CEO Tony Sarsam commented on the results, stating, "SpartanNash continues to prove that we can deliver despite the challenging market dynamics, and we remain on target to reach the $125 to $150 million of gross benefits set out in our strategic plan by the end of 2024." The company's transformational programs are on track to deliver $50 million to $60 million of annual run rate savings from supply chain transformation, merchandising transformation, and go-to-market strategy.
Looking ahead, SpartanNash provided guidance for the second quarter of 2024, forecasting an EPS range of $1.85 to $2.10, which brackets the analyst consensus of $2.00. Revenue guidance for the second quarter was set at $9.5 to $9.7 billion, below the consensus estimate of $9.73 billion.
The company reaffirmed its previous profitability guidance for fiscal 2024, with adjusted EBITDA and adjusted EPS expected to be within the ranges of $255 to $270 million and $1.85 to $2.10, respectively.
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