Chicago, 14 Oct - Supervalu Inc, the third-largest U.S. supermarket operator, posted a drop in quarterly profit Tuesday as consumers hurt by the weak U.S. economy traded down to lower-cost store brands.
The operator of the Albertsons, Jewel-Osco, Shaw's and Save-A-Lot chains, which has been grappling with higher food and fuel costs, also cut its earnings forecast for the year.
Net income fell to $128 million, or 60 cents a share, in the second quarter ended on Sept. 6 from $148 million, or 69 cents a share, a year earlier.
Analysts on average forecast earnings of 69 cents a share, according to Reuters Estimates.
Acquisition-related costs dropped to 1 cent a share from 5 cents.
Net sales rose to $10.23 billion from $10.16 billion. Retail food net sales were flat at $8 billion.
Supervalu said it expected to earn $2.86 to $2.96 per share this year, down from a prior forecast of $3 to $3.16. Analysts were expecting $2.96.
In trading before the market opened, Supervalu shares were unchanged at $18.40.