SpartanNash 2025 Q1 Earnings Revenue Rises 3.7% Amid Net Income Decline

SpartanNash (SPTN) reported its fiscal 2025 Q1 earnings on May 29th, 2025. SpartanNash exceeded revenue expectations with a 3.7% rise to $2.91 billion, though EPS fell short, declining significantly compared to the previous year. The company reaffirmed its fiscal 2025 guidance, maintaining projections for revenue, EBITDA, and adjusted EPS. The guidance remains in line with previous expectations, indicating confidence in achieving the year-end targets despite current challenges. SpartanNash's strategic initiatives continue to play a vital role in driving performance, with a positive outlook for the rest of the fiscal year.

Revenue
In the first quarter of fiscal 2025, SpartanNash's total revenue increased by 3.7%, reaching $2.91 billion compared to $2.81 billion the previous year. The Wholesale segment contributed $1.96 billion, while the Retail segment added $947.20 million, resulting in a combined total revenue of $2.91 billion. This growth reflects the company's ability to leverage its diverse business segments effectively.

Earnings/Net Income
SpartanNash's EPS experienced a substantial decline of 84.2%, dropping to $0.06 in 2025 Q1 from $0.38 in 2024 Q1. Concurrently, net income fell 84.0%, reaching $2.08 million compared to $12.97 million in the previous year. Despite the downturn, SpartanNash has demonstrated continued profitability over 19 years, ensuring stability and resilience. The current EPS performance is notably weak.

Post-Earnings Price Action Review
The post-earnings strategy of acquiring SpartanNash shares when revenue beats expectations and holding them for 30 days proved ineffective, yielding a negative return of -19.63%. The strategy faced high volatility at 32.80% and underperformed the benchmark, with a Sharpe ratio of -0.13 and a maximum drawdown of -46.50%. Additionally, the strategy demonstrated a compound annual growth rate (CAGR) of -4.30%. These figures highlight the significant risks involved and the failure to generate profits, underscoring the strategy's ineffectiveness in the current market environment.

CEO Commentary
Tony Sarsam, Chief Executive Officer, emphasized a strong start to 2025, reporting a record-breaking adjusted EBITDA of nearly $77 million and a 3.7% sales increase to over $2.9 billion. He highlighted the resilience of the Retail segment, achieving a 1.6% rise in comparable store sales despite challenges like inclement weather. Sarsam discussed the Cost Leadership Program aimed at improving the cost structure with expected annual benefits of $50 million, enabling investments in growth and margin expansion. He expressed optimism about the future, reaffirming yearly guidance and confidence in achieving 2025 targets due to ongoing strategic execution and strong operational performance.

Guidance
SpartanNash maintains its revenue guidance for fiscal 2025 at $9.8 billion to $10 billion, corresponding to a 3.7% growth midpoint. Adjusted EBITDA is projected to be between $263 million and $278 million, reflecting a 4.6% growth midpoint. The company anticipates adjusted EPS in the range of $1.60 to $1.85 per diluted share. Capital expenditures are expected to be between $150 million and $165 million. The company now expects food-at-home inflation to be around 2% for the fiscal year, up from a previous expectation of 1%.

Additional News
SpartanNash has announced several key developments recently. On May 22, 2025, the company declared a quarterly cash dividend of $0.22 per share, payable on June 30, 2025. Additionally, SpartanNash's President exercised options and sold $212k worth of stock on March 19, 2025, signaling insider activity amidst current market movements. Furthermore, SpartanNash launched the Brat Shop on May 15, 2025, responding to rising demand for grilling products, showcasing the company's adaptability to consumer trends. These developments reflect SpartanNash's strategic focus on shareholder returns and market responsiveness.