Supervalu (SVU 17.89, -1.74) has slid 8.9% in pre-market as the company's revenue miss and lowered EBITDA guidance offset better than expected earnings.
The food supplier and distributor reported above-consensus third quarter earnings of $0.61 per share on revenue of $3.94 billion, which increased 31.2% year-over-year, but was still shy of market expectations.
Gross margin declined to 10.5% from 13.6% one year ago. A change in business segment mix fueled the decline as Wholesale sales made up a larger portion of total sales.
Wholesale net sales grew 52.0% to $2.89 billion. The increase was fueled by sales from the acquired Unified Grocers business, sales to new customers, and higher sales to new stores operated by existing customers. The growth was partially offset by lower military sales and stores no longer operated by customers.
Retail sales declined 4.1% to $1.02 billion as retail identical store sales fell 3.5%. The segment reported an adjusted operating loss of $3 million.
The company earned $33 million in fees from services agreements, down from $37 million one year ago.
Looking ahead, the company expects that adjusted earnings before interest, tax, depreciation, and amortization for fiscal 2018 will be between $475 million and $485 million after previous guidance called for EBITDA between $475 million and $495 million.