SpartanNash Company recently released its 10-Q report, providing a detailed insight into its financial performance for the second quarter of 2024. The company operates through Wholesale and Retail segments, offering grocery products, perishable food products, and private brand products to independent retailers, national accounts, food service distributors, e-commerce providers, and U.S. military commissaries and exchanges. The Wholesale segment saw a net sales decrease of 4.8% to $1.55 billion, while the Retail segment experienced a 0.4% decrease to $676.1 million in the second quarter compared to the prior year quarter. Net earnings were reported at $0.34 per diluted share, down from $0.57 per diluted share in the previous year, primarily due to lower unit volumes and higher restructuring and asset impairment charges.
The company's gross profit increased by $0.6 million to $353.0 million in the second quarter, representing 15.8% of net sales, compared to 15.2% in the prior year quarter. Selling, general and administrative expenses decreased to 14.3% of net sales in the second quarter from 13.8% in the prior year quarter. Additionally, the company returned $30.4 million to shareholders during the first half of fiscal 2024 through $15.1 million in share repurchases and $15.4 million in dividends.
SpartanNash's net sales for the second quarter decreased by $81.6 million, or 3.5%, to $2.23 billion from $2.31 billion in the prior year quarter. The Wholesale segment's net sales decreased by $78.7 million, or 4.8%, to $1.55 billion, while the Retail segment's net sales decreased by $2.9 million, or 0.4%, to $676.1 million. Comparable store sales decreased by 2.5% in both the current quarter and current year-to-date periods. The company's gross profit for the year-to-date period decreased by $5.7 million from $799.0 million in the prior year-to-date period to $793.3 million in the current year, representing 15.8% of net sales compared to 15.3% in the prior year-to-date period.
In terms of operating earnings, the Wholesale segment reported $22.1 million, up from $21.5 million in the prior year quarter, while the Retail segment reported $4.1 million. The company's net long-term debt to adjusted EBITDA ratio improved sequentially to 2.2x compared to 2.4x at the end of the first quarter. Additionally, capital expenditures and IT capital of $73.4 million during the first half of fiscal 2024 increased compared to $63.5 million during the first half of the prior year.
Following these announcements, the company's shares moved 4.0%, and are now trading at a price of $20.34. Check out the company's full 10-Q submission here.
