Jul 17, 2021

SpartanNash Q2 2021 Earnings Report

Reported strong second quarter results despite labor and supply chain headwinds.

Key Takeaways

SpartanNash reported a decrease in net sales by 3.6% to $2.11 billion compared to the prior year quarter, primarily due to decreased consumer demand related to the COVID-19 pandemic. EPS was $0.47, and adjusted EPS was $0.54. The company increased the low end of its fiscal 2021 profitability outlook range.

Net sales declined 3.6% year-over-year to $2.11 billion due to decreased consumer demand related to the COVID-19 pandemic.

Retail comparable store sales decreased 2.7% for the quarter but increased 12.1% on a two-year basis.

EPS was $0.47 per share, and adjusted EPS was $0.54 per share.

Cash generated from operating activities was $105.4 million, leading to a $75.8 million net pay down of long-term debt.

Total Revenue
$2.11B
Previous year: $2.18B
-3.5%
EPS
$0.54
Previous year: $0.73
-26.0%
Retail Comp Sales
-2.7%
Previous year: 17.1%
-115.8%
Gross Profit
$334M
Previous year: $338M
-1.4%
Cash and Equivalents
$24.1M
Previous year: $34.6M
-30.3%

SpartanNash

SpartanNash

SpartanNash Revenue by Segment

Forward Guidance

The Company is updating its full year guidance for 2021. Total net sales are expected to be between $8.8 billion and $9.0 billion. Adjusted EPS is expected to be between $1.70 and $1.80.

Positive Outlook

  • Total net sales are expected to be between $8.8 billion and $9.0 billion.
  • Retail comparable sales decline between (5.0%) and (2.0%).
  • Food Distribution sales decline between (3.0%) and (1.0%).
  • Adjusted EBITDA is expected to be between $200 million and $210 million.
  • Adjusted EPS is expected to be between $1.70 and $1.80.

Challenges Ahead

  • Military sales decline between (13.0%) and (9.0%).
  • Capital expenditures and IT capital between $80 million and $90 million.
  • Depreciation and amortization between $90 million and $100 million.
  • Interest expense between $14 million and $15 million.
  • Income tax rate between 24.5% and 25.5%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income