Supervalu Shares Tumble Premarket After Company Lowers Outlook

Supervalu Inc. shares slid 5.9% in premarket trade Thursday, after the supermarket chain lowered guidance for full-year adjusted EBITDA, citing a weaker-than-expected second-quarter performance at its Retail and Save-A-Lot segments. The company is now expecting full-year adjusted EBITDA to be down 5% versus the year earlier. The company said its Retail segement has been hurt by competition and a challenging sales environment. It's Save-A-Lot business "has been impacted by deeper levels of deflation as well as lower levels of SNAP (supplemental nutrition assistance program) benefits compared to the first quarter," said a statement. An aggressive store reset program has brought further pressure, although it is expected to bring benefits later in the year. The cmopany now expects its second-quarter same-store sales percentage to be lower than in the first quarter. The company's second quarter ends on Sept. 10. Shares have fallen 19% in the year so far, while the S&P 500 has gained 7%.