SUPERVALU (SVU) Q4 Earnings Drop Y/Y, Wind-Up Plan on Track

SUPERVALU INC. SVUreleased fourth-quarter fiscal 2018 results, with the top and bottom line missing the Zacks Consensus Estimate. However, sales improved year on year, buoyed by the sturdy advancement of the company’s wholesale business.

However, the retail segment continued to be dismal in the fourth quarter.

In fact, this has been weighing on investors’ sentiment for a while. Evidently, shares of this grocery dealer have tumbled 49.7% in the past year, compared with the industry’s decline of 17.2%.

Well, the company has been trying to rationalize its retail operations by exiting certain banners. In this regard, alongside fourth-quarter results, management unveiled plans to sell its Shop ‘n Save and Shop ‘n Save East retail businesses. Such moves are expected to aid SUPERVALU to focus on prospective business areas, especially in the wholesale space and raise investor’s optimism in the stock. Also, the company unveiled plans to sell some of its distribution centers to strengthen its financial position.