SpartanNash Ups Guidance As Q3 Sales Rise

Third quarter net sales at SpartanNash were up more than 10% as the company saw growth in its Wholesale and Retail segments.

For the 12-week quarter ended October 8, consolidated net sales were $2.3 billion, an increase of $223.3 million over the comparable quarter the previous year. Net earnings were $9.5 million, a decrease of 37.6%, compared to $15.2 million in the prior year quarter. Adjusted EBITDA was $57.3 million, an increase of 11.3%, compared to $51.5 million in the prior year quarter.

"In the third quarter, we delivered strong topline growth and continued improvements in our key throughput and fill rate metrics, which contributed to our solid third quarter results and our improved outlook for the balance of this year," said SpartanNash president and CEO Tony Sarsam. "We remain relentlessly focused on our People First culture, achieving operational excellence and meeting the needs of our customers. We will continue to execute on our core capabilities to drive results and increase shareholder value."

Net sales for the Wholesale division increased $165.4 million, or 11.3%, to $1.63 billion from $1.46 billion in the prior year quarter. The increase in net sales was due primarily to the inflationary impact on pricing. Net sales for the Retail division increased $57.9 million, or 9.5%, to $666.6 million from $608.7 million in the prior year quarter, primarily due to inflationary pricing. Retail comparable store sales increased 8.0% for the quarter.

As announced on Nov. 2, given strong year-to-date results through the third quarter, the company raised its fiscal year 2022 guidance. These updates included increasing net sales to a range of $9.5 billion to $9.7 billion, compared to the prior guidance of $9.3 billion to $9.6 billion. Adjusted EBITDA is expected to be in the range of $237 million to $242 million, compared to the prior guidance of $227 million to $240 million.