SpartanNash Company (SPTN) Q1 2025 earnings summary

Executive summary

• Net sales rose 3.7% year-over-year to $2.91 billion, driven by Retail segment growth and recent acquisitions, while Wholesale sales declined 2.6% due to lower national account volumes and elimination of intercompany sales to acquired stores.

• Retail comparable store sales increased 1.6%, aided by acquisitions, while military net sales grew for 13 consecutive quarters.

• Adjusted EBITDA reached a record $76.9 million, up from $74.9 million, exceeding internal expectations.

• Net earnings fell to $2.1 million ($0.06 per diluted share) from $13.0 million ($0.37 per share), with adjusted EPS at $0.35 versus $0.53.

• $8.0 million was returned to shareholders via dividends, and cash from operations was $25.8 million.

Financial highlights

• Gross profit improved to $481.5 million (16.5% of sales) from $440.3 million (15.7%), mainly due to acquired stores and a favorable sales mix.

• SG&A expenses rose to $459.1 million (15.8% of sales) from $403.6 million (14.4%), reflecting higher Retail labor, realignment, and depreciation.

• Operating earnings dropped to $19.0 million from $30.6 million year-over-year.

• Interest expense increased 12.8% to $15.2 million, primarily from higher average debt balances.

• Capital expenditures and IT capital were $34.6 million, down from $44.1 million.

Outlook and guidance

• Fiscal 2025 guidance reaffirmed: net sales $9.8–$10.0 billion, adjusted EBITDA $263–$278 million, adjusted EPS $1.60–$1.85, and capital expenditures $150–$165 million.

• Guidance includes a $0.30 adjusted EPS headwind from higher non-cash expenses and interest costs.

• The 53rd week is expected to contribute $0.2 billion in net sales, $4.0 million in adjusted EBITDA, and $0.06 in adjusted EPS.

• Food-at-home inflation assumption raised to 2% for the year.

• Guidance includes impact from transformational programs, tuck-in acquisitions, and a 53-week year.