Back to Business...NEGATIVE
NEW YORK (MarketWatch) -- Supervalu Inc.said Wednesday that earnings for the first quarter would be substantially below "First Call consensus earnings for the quarter." Analysts polled by FactSet Research estimated, on average, earnings of 65 cents a share for the grocer. Chief Executive Craig Herkert stated, "Consumers have become more value focused and cautious in their spending which has pressured sales and margins greater than anticipated. We currently estimate our identical store sales will be approximately negative 3%."
Supervalu is a national grocer......groceries are the last spend a consumer cuts back.....sales tend to be more resillient due to the tens of billions in food stamps government hands out each year.
It is clear that the strain on the consumer is getting much more severe. We are now seeing HealthCare and Government start to ramp up layoffs and paycuts.
Prepare for lots of negative and downward revisions as the summer progresses.