Friday, July 29, 2011

Earnings reports in from Whole Foods, Safeway, Supervalu, Kimco and PREIT

In the last week a number of supermarkets and REITS announced earnings. Here is a summary of a few with local ties.


  • Whole Foods announced that net income for the fiscal third quarter rose 34.6% to $88.5 million, and sales climbed 10.9% to $2.4 billion. According to the company, a better price image and strong selection resulted in an 8.4% increase in comparable store sales.

  • Supervalu (Acme, Save-A-Lot) reported net income of $74 million for the fiscal first quarter, up from $67 million a year earlier. Net sales fell 3.7% to $11.11 billion. The company's first quarter gross margin (22.1% of net sales) was down slightly from the first quarter of last year. Selling and administrative expenses were down as well. For the year, Supervalu expects identical store sales - excluding fuel - to fall by 1.5 - 2.5%, and they do not plan to add any stores.

  • Safeway reported net income of $145.8 million for the second quarter of 2011, up from $141.3 for the same period last year. Sales and other revenue for the quarter were $10.2 billion, up from $9.52 billion a year earlier. However, net income for the six months ended June 18 were $171 million, compared to $237.3 million for the first six months of 2010. Sales and other revenue for the six month period in 2011 were higher than the 2010 period by over $1 billion ($19.97 billion vs. $18.85 billion). The company expects identical store sales to improve by nearly 1% for the full year.

  • Kimco reported a 57% jump in second quarter earnings, as profits rose to $38.7 million. Funds from operations rose three cents during the quarter to 29 cents per share, and revenue from rental properties increased 5.2% to $219.2 million. In addition, Kimco executed 594 leases, renewals and options totaling 1.9 million square feet during the quarter. Occupancy at its U.S. shopping centers rose to 92.9%, compared to 92.4% a year earlier and 92.5% in the first quarter.

  • PREIT reported that funds from operations for the second quarter were $19 million ($0.33 per diluted share), compared to $19.7 for the same period last year. Net operating income for the quarter was $66.3 million (compared to $69.7 million), and NOI was down for the first six months of the year as well. According to PREIT, this was due to the sale of five power centers in Sept. 2010. The company had a net loss of $18.2 million for the quarter. 

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