Wholesale, Retail Growth Drive SpartanNash Q1 Sales
First quarter net sales at SpartanNash were up more than 5% as the company saw growth in its wholesale and retail segments.
For the 16-week first quarter ended April 22, net sales were $2.91 billion, up 5.2% from the comparable quarter the previous year. Net earrings in the quarter were $11.3 million, or $0.32 per diluted share, compared to net earnings of $19.3 million, or $0.53 per diluted share in the first quarter of the prior year.
"Our strong first quarter results were driven by operational excellence amid a challenging macroeconomic environment, which sets us up to achieve our full-year guidance," said Tony Sarsam, SpartanNash president and CEO. "The improved year-over-year performance reflects the success of our transformational initiatives, which we believe will continue to yield cost savings and significant benefits for our Wholesale customers, Retail shoppers and shareholders. We are building momentum on our long-term plan, and we expect this transformation to drive shareholder value for years to come."
Net sales in the company’s wholesale division increased $103.3 million, or 5.2%, to $2.09 billion from $1.98 billion in the prior year quarter. The growth in net sales was due primarily to the inflationary impact on pricing in the current quarter, as well as an increase in volume within the military channel. The segment experienced overall lower case volumes, which reduced net sales by 2.9%.
The company's supply chain network serves wholesale customers that include independent and chain grocers, national retail brands, e-commerce platforms, and U.S. military commissaries and exchanges around the globe. The company distributes products for every aisle in the grocery store, from fresh produce to household goods to its Own Brands, which include the Our Family portfolio of products.
Net sales in SpartanNash’s retail division increased $40.4 million, or 5.2%, to $821.7 million from $781.3 million in the prior year quarter. Retail comparable store sales grew 5.4% for the quarter, primarily due to the inflationary impact on pricing, partially offset by a 6.0% decline in volume.
The reported operating loss for retail was $2 million, compared to earnings of $0.03 million in the prior year quarter. As a rate of sales, the decrease was due to a lower gross profit rate, restructuring and asset impairment charges related to two store closures, and continued investment in store wage rates, partially offset by lower incentive compensation and health insurance costs.