Sweet & Sour Quarter: SpartanNash Beats Q1 Profits But Lowers FY24 Sales Forecast
SpartanNash Company (NASDAQ:SPTN) shares are trading lower after the company reported first-quarter FY24 results.
Revenue declined 3.5% Y/Y to $2.81 billion, missing the consensus of $2.854 billion, reflecting lower volumes in the Wholesale and Retail segments. Retail comparable store sales were down 2.5% in the quarter.
Adjusted EBITDA declined to $74.9 million from $76.8 million a year ago. Adjusted EPS of $0.53 beat the consensus of $0.51.
SpartanNash generated an operating cash flow of $36.5 million in the quarter. During the quarter, the company returned $10.7 million to shareholders through $2.6 million in share repurchases and $8.1 million in dividends.
The company says it is on track to deliver annual run rate savings of $50 million to $60 million from supply chain transformation, merchandising transformation, and go-to-market strategy.
SpartanNash exited the quarter with $18.97 million in cash and equivalents.
FY24 Outlook: SpartanNash lowered net sales outlook to $9.50 billion-$9.70 billion (from $9.70 billion-$9.90 billion) vs. $9.73 billion estimate. Meanwhile, it reaffirmed the adjusted EPS outlook at $1.85 to $2.10 vs. the street view of $2.00.
SpartanNash CEO Tony Sarsam said, “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 – a year earlier than initially communicated.”
Price Action: SPTN shares are trading lower by 3.40% at $19.30 at the last check Thursday.
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