Cost PressuresRetail EBITDA was below estimates and had negative EBIT due to cost pressures including an estimated impact from Pharmacy Benefit Manager.
Earnings OutlookAdjusted EPS is expected to be much lower than previous estimates due to higher depreciation and interest expenses.
Top-Line ChallengesLonger term, there is a challenging outlook for SPTN’s top-line, as small- and mid-sized food retailers remain pressured due to competitive disadvantages to larger peers.