Supervalu positive post Q1 results

|By:, SA News Editor

Supervalu (NYSE:SVU) reports Wholesale net sales rose 3% to $1.79B in Q4, primarily due to sales to new customers and increased sales from new stores operated by existing customers.

Retail net sales squeezed 3.2% to $1.07B and identical store sales fell 5.8%.

Gross margin rate grew 10 bps at 15% primarily driven by higher gross margins and vendor allowances as well as lower inventory shrink costs.

Adjusted SG&A expense rate up 20 bps to 12.3% primarily due to higher employee costs.

Operating margin rate slipped 140 bps to 1.2%.

SVU +1.82% premarket.