Wholesale, Retail Sluggishness Hit SpartanNash

SpartanNash reported a drop in overall revenue for the first quarter as the food solutions company was impacted by decreases in its wholesale and retail segments.

For the 16 weeks ended April 20, company-wide net sales were $2.81 billion, a decrease of 3.5% from the comparable quarter the previous year. Wholesale segment net sales decreased 3.4% to $2.01 billion due to reduced revenue in the national accounts customer channel. 

Retail segment net sales were down 3.6% to $792.2 million, with comparable store sales down 2.5%. The net sales decrease included a reduction in food assistance program benefits and lower fuel sales.

Adjusted earnings per share in the quarter was $0.53, compared to $0.64 in the same quarter the previous year. Adjusted EBITDA was $74.9 million, compared to $76.8 million. These measures exclude, among other items, restructuring and asset impairment charges and the impact of the LIFO provision, company officials said.

"SpartanNash continues to prove that we can deliver despite the challenging market dynamics, and we remain on target to reach the $125 to $150 million of gross benefits set out in our strategic plan by the end of 2024 – a year earlier than initially communicated,” said Tony Sarsam, CEO of SpartanNash. “Thanks to the operational excellence and dedication of our associates, along with our investments in supply chain and merchandising transformations, we continued to expand our adjusted EBITDA margin in the first quarter.”