After solid gains throughout the day, Spartan Stores (NASDAQ:SPTN) slipped after-hours on its announcement late Wednesday that second-quarter revenue fell on still-weak consumer demand.
The Grand Rapids, Michigan-based company posted net earnings of $11.24 million, or 50 cents a share, compared with $10.43 million, or 46 cents a share in the same quarter last year.
Earnings were ahead of average analyst estimates polled by Thomson Reuters of 44 cents.
Revenue for the grocery store chain was $602.1 million, down from the year-earlier period of $610.2 million, and beating the Street’s view of $589.8 million.
The company attributed the decline primarily to lower retail sales amid weak economic conditions, partially offset by higher fuel sales.
Retail sales were down to $353.5 million from $360.2 million a year ago.
“We continue to be encouraged by the improvement in our business trends,” Spartan CEO Dennis Eidson said in a statement, noting comparable store sales have improved on a sequential basis for the past two quarters.
“We are particularly pleased with our operating expense management, inventory reduction and efficiency improvements in our distribution segment,” he said.
Operating expenses were $113.1 million, or 18.8% of sales, down from $115 million in the earlier-year quarter.