It was a strong second quarter for SpartanNash as growth across the company’s three business units boosted sales for the 12 week period ending July 16.
Consolidated net sales for the second quarter increased $167.3 million, or 7.9%, to $2.3 billion from $2.1 billion in the prior year quarter. Gross profit for the second quarter was $354.2 million, or 15.6% of net sales, compared to $333.6 million, or 15.8% of net sales, in the prior year quarter. The gross profit increase was driven by higher sales, while the gross margin rate decline was driven by lower retail margins.
Net earnings were $5.1 million in the quarter, compared to $16.8 million in the prior year. Adjusted EBITDA was $61.8 million, an increase of 13.7%, compared to $54.4 million in the prior year quarter.
"These results were driven by our continued turnaround in the Military business and the margin improvements across our distribution businesses,” said Tony Sarsam, president and CEO of SpartanNash. “With the launch of our merchandising transformation, we are doubling down on our efforts to maintain price competitiveness in this highly inflationary environment. We believe that when the end consumer wins, we all win."
By segment, net sales for Food Distribution increased $61.8 million, or 5.9%, to $1.12 billion from $1.06 billion in the prior year quarter. The increase in net sales was due primarily to the inflationary impact on pricing.
In the Retail segment, net sales increased $52.4 million, or 8.5%, to $672.4 million from $620.0 million in the prior year quarter, primarily due to inflationary pricing and share gains. Retail comparable store sales increased 6.5% for the quarter. Net sales for Military increased $53.1 million, or 12.4%, to $483.2 million from $430.1 million in the prior year quarter. The increase was primarily related to inflation and an increase in case volume.
As a result of the company’s strong performance to date along with the success of its supply chain transformation, SpartanNash is raising its full-year outlook for the second time this year. The company now estimates yearly net sales of between $9.3 billion and $9.6 billion