GICS Sector : Consumer Defensive
SpartanNash Company distributes and retails grocery products.It operates in three segments: Food Distribution, Military, and Retail.The Food Distribution segment offers approximately 65,000 stock-keeping units, such as dry groceries, produce, dairy products, meat, delicatessen items, bakery goods, frozen food, seafood, floral products, general merchandise, beverages, tobacco products, health and beauty care, and pharmacy products to independent retailers, national retailers, food service distributors, e-commerce providers, and corporate owned retail stores.
SpartanNash reported a robust first fiscal quarter of 2025, with net sales increasing 3.7% year-over-year to $2.9 billion, driven by strength in its Retail segment. The company posted record adjusted EBITDA of $76.9 million, a 2.6% improvement from Q1 2024, and adjusted EPS of $0.35, slightly below the consensus estimate of $0.46. Despite this, the company reaffirmed its fiscal 2025 guidance, reflecting confidence in its strategic execution. As CEO Tony Sarsam noted, "Our strategic plan is on track, and we are well-positioned to deliver long-term value to our shareholders."
Publication Date: May -29
The Retail segment was a standout performer, with comparable store sales increasing by 1.6% despite an 80 basis point headwind from weather-related store closures. The company's focus on fresh offerings and convenience store expansion resonated well with consumers, as evidenced by the 148% surge in sales from its summer grilling campaign. However, Retail EBITDA faced pressure from higher costs, including a $3 million impact from pharmacy operations and $1-2 million in one-time ice storm-related expenses.
The Wholesale segment delivered net sales of nearly $2 billion, with growth in the military channel offsetting softness in national accounts. Adjusted EBITDA for the segment increased by 7.2%, demonstrating the company's ability to navigate challenges in the broader wholesale market. This performance underscores SpartanNash's diversified business model and its ability to balance growth across its segments.
The company's Cost Leadership Program continues to deliver results, with $20 million in annual savings realized during the quarter. The initiative, which focuses on procurement, automation, and labor efficiency, is expected to contribute $50 million in annual savings by 2026. This program not only enhances profitability but also positions SpartanNash to better compete in a dynamic retail and wholesale environment.
SpartanNash is making significant strides in its strategic growth initiatives, including the expansion of its Hispanic market presence through the Supermercado Nuestra Familia format. The recent opening of its largest store in Omaha highlights the company's commitment to tailored retail experiences that resonate with diverse consumer preferences. Additionally, the company's focus on convenience store expansion and its successful summer grilling campaign underscore its ability to adapt to evolving consumer trends.
Overall, SpartanNash's Q1 performance highlights its ability to execute on strategic initiatives while navigating macroeconomic challenges. The company's focus on cost efficiency, retail remodels, and targeted growth initiatives position it well for long-term success. While the EPS miss and negative free cash flow yield warrant attention, the reaffirmed guidance and strong top-line growth suggest a positive outlook for fiscal 2025.
C&S Wholesale Grocers Completes Acquisition of SpartanNash
Sep -22
SpartanNash Declares Quarterly Cash Dividend
Aug -28
SpartanNash Brings Flavor and Culture to Topeka with New Supermercado Nuestra Familia Store
Aug -18
Spartan Stores (SPTN) Q2 Earnings Top Estimates
Aug -14
SpartanNash Announces Second Quarter Fiscal 2025 Results
Aug -14
SpartanNash Welcomes Jason Ulichnie as Vice President, OwnBrands Marketing
Aug -11
SpartanNash Announces New IT Leadership with CIO and CISO Appointments
Aug -11
SpartanNash Gathers Thousands of Grocery Industry Leaders in Grand Rapids at Annual Food Solutions Expo
Aug -05
SpartanNash Company's wholesale segment growth of 1.2% is driven by increasing demand for private label products, expansion of distribution channels, and strategic acquisitions. Additionally, the company's focus on enhancing its supply chain and logistics capabilities has improved operational efficiency, leading to higher sales volumes and revenue growth.
SpartanNash Company's Retail segment growth of 0.8% is driven by increasing demand for private label products, strategic pricing initiatives, and effective inventory management. Additionally, the company's focus on enhancing the customer shopping experience through remodels and technology investments has contributed to the growth.
SpartanNash Company distributes a wide range of food products, including fresh produce, meat, dairy, bakery, and dry goods to grocery retailers, foodservice providers, and military commissaries.
SpartanNash provides food and non-food products to military commissaries and exchanges, supporting the military and their families.
SpartanNash operates a chain of retail grocery stores, offering a wide range of products and services to customers.
SpartanNash offers food processing services, including meat cutting, produce processing, and bakery operations.
SpartanNash offers a range of private label products, including food, beverages, and household essentials.
SpartanNash Company operates in the grocery retail industry, where substitutes are readily available. However, the company's focus on providing high-quality products and services helps to mitigate the threat of substitutes.
SpartanNash Company's customers have some bargaining power due to the availability of substitutes. However, the company's strong brand reputation and loyalty programs help to reduce the bargaining power of customers.
SpartanNash Company's suppliers have some bargaining power due to the company's dependence on them for high-quality products. However, the company's large scale of operations and strong relationships with suppliers help to mitigate the bargaining power of suppliers.
The threat of new entrants in the grocery retail industry is low due to the high barriers to entry, including the need for significant capital investment and established relationships with suppliers.
The intensity of rivalry in the grocery retail industry is high due to the presence of several established players, including Walmart, Kroger, and Costco. SpartanNash Company must focus on differentiating itself through its private label products and excellent customer service to remain competitive.
| Value | |
|---|---|
| Debt Weight | 0.00% |
| Debt Cost | 5.07% |
| Equity Weight | 100.00% |
| Equity Cost | 6.66% |
| WACC | 6.66% |
| Leverage | 0.00% |
Value: 7.3
Growth: 3.3
Quality: 2.1
Yield: 7.0
Momentum: 8.5
Volatility: 3.3
1-Year Total Return ->
Value: 3.9
Growth: 8.7
Quality: 5.2
Yield: 0.0
Momentum: 8.0
Volatility: 5.7
1-Year Total Return ->
Value: 6.4
Growth: 5.9
Quality: 4.1
Yield: 4.0
Momentum: 2.0
Volatility: 5.7
1-Year Total Return ->
Value: 7.5
Growth: 6.7
Quality: 3.6
Yield: 4.0
Momentum: 2.0
Volatility: 4.0
1-Year Total Return ->
Value: 7.0
Growth: 4.6
Quality: 1.9
Yield: 0.0
Momentum: 10.0
Volatility: 3.0
1-Year Total Return ->
Value: 5.1
Growth: 4.7
Quality: 4.3
Yield: 0.0
Momentum: 5.0
Volatility: 6.3
1-Year Total Return ->