SpartanNash reaffirms 2024 outlook as Q2 earnings top estimates

GRAND RAPIDS, Mich. - Food solutions company SpartanNash (NASDAQ:SPTN) reported second quarter earnings that beat analyst estimates, while revenue fell short of expectations. The company reaffirmed its full-year 2024 guidance.

SpartanNash posted adjusted earnings per share of $0.59 for Q2, edging past the analyst consensus of $0.58. Revenue came in at $2.23 billion, below the $2.28 billion analysts were expecting and down 3.5% year-over-year.

"The team's execution of our transformational initiatives has created a foundation for future growth while contributing to our margin gains year-to-date," said SpartanNash President and CEO Tony Sarsam.

Net sales in the Wholesale segment decreased 4.8% to $1.55 billion, primarily due to reduced volumes in the national accounts customer channel. Retail segment net sales dipped 0.4% to $676.1 million, with comparable store sales down 2.5%.

The company generated $132.1 million in cash from operations year-to-date, up 166% compared to the same period last year, which it attributed to ongoing working capital management initiatives.

Looking ahead, SpartanNash reaffirmed its fiscal 2024 outlook, forecasting adjusted EPS of $1.85-$2.10 and revenue of $9.5-$9.7 billion. The guidance incorporates the company's long-term strategic initiatives, including all transformational programs and tuck-in acquisitions.

SpartanNash also announced it is piloting a Customer Value Proposition initiative aimed at enhancing freshness, value and convenience. As part of this store modernization program, the company is lowering prices on 6,000 products.

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Source: Investing.com