SpartanNash Reports 3.7% Increase in Net Sales, Net Earnings Decline in Q1 Fiscal 2025

SpartanNash Company reported its financial results for the first quarter of fiscal 2025, revealing a net sales increase of 3.7% to $2.91 billion, compared to $2.81 billion in the same period last year. The Wholesale segment experienced a decline in sales, down 2.6% to $1.96 billion, while the Retail segment saw a significant increase of 19.6%, reaching $947.2 million. The company's net earnings fell sharply to $2.1 million, or $0.06 per diluted share, down from $13.0 million, or $0.37 per diluted share, in the prior year quarter. Adjusted earnings per share also decreased to $0.35 from $0.53.

The financial performance reflects a challenging environment for the Wholesale segment, which faced a 3.3% decline in overall case volumes, primarily due to reduced sales in the national accounts customer channel and the elimination of intercompany sales to newly acquired stores. In contrast, the Retail segment's growth was bolstered by incremental sales from acquisitions and a 1.6% increase in comparable store sales, despite a 2.9% decline in unit volumes. The gross profit for the quarter increased by 9.3% to $481.5 million, driven by a favorable sales mix and improved gross margin rates.

Strategically, SpartanNash has expanded its footprint through acquisitions, including Metcalfe Markets and Fresh Encounter, which contributed to the Retail segment's growth. The company also reported a net charge of $3.8 million related to acquisition and integration costs, reflecting ongoing efforts to enhance its market position. However, the company faced restructuring and asset impairment charges, resulting in a net gain of $0.4 million in the current quarter, compared to a loss of $5.8 million in the prior year.

Operationally, SpartanNash's total employee headcount remained stable, with the company operating 192 corporate-owned retail stores and 39 fuel centers. The company generated $25.8 million in cash from operating activities, a decrease from $36.5 million in the previous year, while capital expenditures totaled $34.6 million, down from $44.1 million. The company also returned $8.0 million to shareholders through dividends during the quarter.

Looking ahead, SpartanNash anticipates that ongoing growth and cost-saving initiatives will positively impact future results, although macroeconomic challenges, including changes in consumer demand and rising input costs, may pose risks. The company remains committed to investing in its operations to support both organic and inorganic growth strategies, while maintaining a focus on enhancing shareholder value.