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Jul 11, 2020
SpartanNash Q2 2020 Earnings Report
SpartanNash's financial performance exceeded expectations during the second quarter of fiscal year 2020.
Key Takeaways
SpartanNash reported a strong second quarter with net sales increasing by 9.4% to $2.18 billion and EPS of $0.80. The company's retail comparable store sales increased by 17.1%.
Net sales increased by 9.4% to $2.18 billion.
Retail comparable store sales increased 17.1%.
EPS was $0.80 per share, and adjusted EPS increased 115% to $0.73 per share.
Adjusted EBITDA increased 33.5% to $59.2 million.
SpartanNash
SpartanNash
SpartanNash Revenue by Segment
Revenue by Segment
Retail Revenue
CapyFin.com Forward Guidance
The Company anticipates benefiting from higher consumer food-at-home consumption related to the effects of COVID-19 for the remainder of the year. The Company is updating its annual outlook to reflect actual year-to-date financial results, as well as expectations for the remainder of the fiscal year related to earnings trends.
Positive Outlook
- Adjusted earnings per share from continuing operations of approximately $2.40 to $2.60 compared to its prior projection of $1.85 to $2.00.
- Reported earnings per share from continuing operations are expected to range from $2.13 to $2.41 compared to its prior projection of $1.48 to $1.81.
- Fiscal 2020 adjusted EBITDA of $232 million to $242 million compared to its prior guidance of $205 million to $215 million.
- Capital expenditures and IT capital in the range of $80.0 million to $90.0 million for fiscal year 2020.
- Interest expense is now expected to range from $17.5 million to $18.5 million in fiscal 2020.
Challenges Ahead
- The duration and magnitude of the impact of COVID-19 remain uncertain.
- The Company is unable to fully estimate the impact COVID-19 will have on sales for the remainder of 2020.
- Guidance reflects an adjusted effective tax rate of 23.5% to 24.5%.
- Guidance reflects a reported effective tax rate of 14.0% to 15.0%.
- Uncertainty related to the COVID-19 pandemic.