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PORTLAND — Supervalu Inc. reported a loss for its third quarter on Tuesday, dragged down by falling revenue and asset values, tighter margins and the cost of closing some stores.
The grocer cut its full-year outlook based on the poor performance, and its shares plunged in trading.
The company, which operates Alberstons, Jewel-Osco and other supermarket chains, reported a loss of $202 million, or 95 cents per share, for the quarter. That's compared with net income of $109 million, or 51 cents per share, in the same quarter last year.
Supervalu recorded a hefty $252 million in charges during the quarter, mainly to reflect the shrinking value of its brand and other intangible assets. The charges also covered store closing costs, employee severance and other items. Excluding the charges, the company earned 24 cents per share.
The results missed analysts' average forecast for profit of 32 cents per share on $8.67 billion, according to FactSet. Analysts typically exclude one-time items.
Revenue fell 6 percent to $8.67 billion.
Supervalu CEO Craig Herkert said the results "are not indicative of the earning power you should expect from our company" and the company is working to change its trajectory.
Supervalu launched a turnaround plan more than a year ago — revamping its management, cutting costs, lowering debt and closing some stores. In recent months it announced the sale of its Bristol Farms chain and its logistics and supply-chain business. It also has emphasized lower prices and its Save-A-Lot stores to draw today's price-conscious shoppers.
But it has yet to see the benefit of these efforts. Shoppers are keeping their spending below pre-recession levels, and competition has intensified in the tough economy. The company reported that some of the steps it took to improve promotions and prices were ineffective and cut its margins too tight.
Supervalu now expects to report a loss of $7.09 to $7.19 per share for the year. Excluding one-time items, it expects to earn $1.25 to $1.35 per share. It previously predicted a loss of $5.74 to $5.94 per share and adjusted earnings of $1.40 to $1.60 per share.
Analysts expected adjusted earnings of $1.43 per share for the year.
Company leaders pledged changes, saying they are keeping tight controls on costs and better monitoring of promotions. But investors were not swayed.
Supervalu's stock, which was one of the worst performers in the Standard & Poor's 500 in 2010, plunged roughly 12 percent by midday. Shares were down $1.07 to $7.52.
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AP Retail Writer Michelle Chapman contributed to this report from New York.
