Executive Summary

Net sales rose 3.7% to $2.91B; Retail comps turned positive (+1.6%) while Wholesale margins improved; adjusted EBITDA set a quarterly record at $76.9M .
GAAP diluted EPS fell to $0.06 due to higher D&A, organizational realignment, and Retail wage investments; adjusted EPS was $0.35 .
Guidance reaffirmed: FY25 net sales $9.8–$10.0B, adjusted EBITDA $263–$278M, adjusted EPS $1.60–$1.85, CapEx & IT capital $150–$165M; 53rd week expected to add ~$0.2B net sales, $4.0M adjusted EBITDA, $0.06 EPS .
Investor catalysts: continued Wholesale margin expansion, Retail acquisition contributions, and back-half realization of the new cost leadership program (~$20M FY25 benefit; ~$50M annual run-rate by FY26) .

What Went Well and What Went Wrong

What Went Well

Record adjusted EBITDA of $76.9M, +2.6% YoY; management emphasized “beating budget” and reaffirmed FY25 outlook .
Retail momentum: comps +1.6% (pro forma ~2.4% excluding 80 bps weather headwind); acquired stores drove Retail net sales +19.6% YoY to $947.2M .
Wholesale resilience: improved gross margin rate and adjusted EBITDA +7.2% YoY to $61.8M despite national accounts volume softness; military channel growth continues (13 consecutive quarters) .

What Went Wrong

GAAP EPS declined to $0.06 (vs $0.37), and Retail operating loss widened to $(14.3)M due to higher D&A, realignment costs, store labor, pharmacy PBM pressure (~$3M), and storm-related losses ($1–$2M) .
Wholesale net sales decreased 2.6% to $1.96B on reduced national account case volumes and intercompany eliminations tied to Fresh Encounter .
Cash from operations fell to $25.8M vs $36.5M YoY, reflecting working capital and storm disruptions .

Financial Results

Key Metrics by Quarter (oldest → newest)

Metric	Q3 2024	Q4 2024	Q1 2025
Net Sales ($USD Billions)	$2.251	$2.262	$2.910
Gross Profit Margin (%)	15.8%	16.1%	16.5%
Diluted EPS (GAAP, $)	$0.32	$(1.04)	$0.06
Adjusted EPS ($)	$0.48	$0.42	$0.35
Adjusted EBITDA ($USD Millions)	$60.5	$58.6	$76.9

Q1 2025 Actual vs S&P Global Consensus

Metric	Actual	Consensus	Outcome
Revenue ($USD Billions)	$2.910	$2.864*	Beat
Primary EPS ($)	$0.35	$0.425*	Miss
EBITDA ($USD Millions)	$76.9 (adjusted)	$75.675*	See note
EBITDA ($USD Millions, S&P-defined)	$59.276*	$75.675*	Miss

Values with asterisk retrieved from S&P Global. Note: Company reports adjusted EBITDA ($76.9M); S&P’s EBITDA actual reflects a different definition and shows $59.3M.

Segment Breakdown (Q1 2025 vs Q1 2024)

Segment Metric	Q1 2024	Q1 2025
Wholesale Net Sales ($USD Billions)	$2.014	$1.962
Wholesale Operating Earnings ($USD Millions)	$36.0	$33.2
Retail Net Sales ($USD Millions)	$792.2	$947.2
Retail Operating (Loss) ($USD Millions)	$(5.4)	$(14.3)

KPIs and Operating Metrics

KPI	Q3 2024	Q4 2024	Q1 2025
Retail Comparable Store Sales (%)	(0.7%)	(0.7%)	+1.6%
Military Channel – Consecutive Quarters of Growth	11	12	13
Net Long-Term Debt / Adjusted EBITDA (x)	2.4	2.8	2.9

Q1 cash flow and investment (YoY):

Metric	Q1 2024	Q1 2025
Cash from Operations ($USD Millions)	$36.5	$25.8
CapEx & IT Capital ($USD Millions)	$44.1	$34.6
Dividends Returned ($USD Millions)	—	$8.0

Guidance Changes

Metric	Period	Previous Guidance (Feb 12, 2025)	Current Guidance (May 29, 2025)	Change
Total Net Sales ($USD Billions)	FY 2025 (53 weeks)	$9.8 – $10.0	$9.8 – $10.0	Maintained
Adjusted EBITDA ($USD Millions)	FY 2025	$263 – $278	$263 – $278	Maintained
Adjusted EPS ($)	FY 2025	$1.60 – $1.85	$1.60 – $1.85	Maintained
CapEx & IT Capital ($USD Millions)	FY 2025	$150 – $165	$150 – $165	Maintained
53rd Week Contribution	FY 2025	~$0.2B revenue; $4.0M adj. EBITDA; $0.06 EPS	~$0.2B revenue; $4.0M adj. EBITDA; $0.06 EPS	Maintained
Dividend per Share ($)	Q2 2025	—	$0.22 declared (payable Jun 30, 2025)	Announced

Earnings Call Themes & Trends

Topic	Q-2 (Q3 2024)	Q-1 (Q4 2024)	Current (Q1 2025)	Trend
Cost leadership & margin programs	Shrink and indirect procurement targeting $20M run-rate by YE24; mid-single-digit FY25 EBITDA growth preview	New cost leadership plan launched; DC automation pilot (robotic selectors)	~$20M FY25 benefit, back-half weighted; ~$50M annual run-rate in FY26	Accelerating benefits in H2
Retail strategy & Hispanic format	Metcalfe’s acquisition; sequential comp improvement; private label penetration high-20s%	Retail comps improved; strategy to remodel, expand C-store, grow Hispanic footprint	Hispanic store expansion: 2–3 openings in Midwest in 2025; strong performance; Michigan expansion planned	Expansion underway
Inflation & promotions	Food-at-home ~1%; rising promo depth; vendor funding support	FY25 inflation assumption ~1%	FY25 inflation now ~2%; rising promo environment; comps pro forma ~2.4% excluding storm	Inflation up modestly; promos elevated
Military channel	11 consecutive quarters of growth	12 consecutive quarters; accretive growth	13 consecutive quarters; offsetting wholesale softness	Consistent strength
M&A posture	Fresh Encounter (grocery) and Markham (C-store) announced; ~$10M adj. EBITDA aggregate expected	Retail goodwill impairment (legacy retail drivers); tuck-ins included in FY25 guide	Integration ongoing; active pipeline; tuck-ins continue	Ongoing tuck-in focus

Management Commentary

“Posting another quarter of growth and achieving record adjusted EBITDA in the first quarter… strong Wholesale margins, positive comparable store sales, and increased sales from our recent Retail acquisitions.” — CEO Tony Sarsam .
“Adjusted EBITDA came in at a record $77 million… driven by higher retail sales, improvements in wholesale margins, reduced shrink within our supply chain, and lower corporate administrative expenses.” — CFO Jason Monaco .
“Cost leadership program… expected to deliver $50 million of annual benefits… with gains this year of approximately $20 million.” — CEO Tony Sarsam .
“We are reaffirming our yearly guidance despite the macro environment.” — CEO Tony Sarsam .

Q&A Highlights

Hispanic format expansion: 2–3 additional stores planned across Midwest this year; strong top- and bottom-line performance; Michigan entry confirmed .
Cost leadership cadence: ~$20M FY25 benefit largely in back half; first-half investments suppress earnings; impacts both segments via procurement, supply chain, and retail operations .
Retail profitability pressures: pharmacy PBM impact (~$3M in Q1), storm-related losses ($1–$2M), and higher store labor; expectations to normalize beyond one-time weather effects .
Demand, inflation, and promotions: stable quarterly cadence; food-at-home inflation ~2% FY25; elevated promotional activity industry-wide .
SNAP headwinds: slight negative impact easing vs 12–18 months ago; limited amplification given mix .

Estimates Context

Q1 2025 vs S&P Global consensus: Revenue beat ($2.91B vs $2.864B*), EPS miss ($0.35 vs $0.425*), EBITDA (S&P-defined) miss ($59.3M* vs $75.7M*) .
Company reported adjusted EBITDA of $76.9M, reflecting non-GAAP adjustments (LIFO, realignment, D&A, etc.); differences vs S&P’s EBITDA definition drive apparent variance versus consensus .
Estimate breadth: 4 EPS estimates*, 3 revenue estimates*; likely model revisions necessary to reflect revised FY25 inflation (2%), back-half cost leadership benefits, and Retail wage/pharmacy dynamics .

Values with asterisk retrieved from S&P Global.

Key Takeaways for Investors

Wholesale margin expansion and military strength are offsetting national account volume softness; expect continued contribution as cost leadership benefits ramp in H2 .
Retail trajectory improving with positive comps (+1.6%) and acquisition contributions, but profitability remains pressured by labor and pharmacy PBM dynamics; watch execution on remodels and Hispanic format expansion .
FY25 guidance reaffirmed with explicit 53rd-week contribution; back-half weighted cost program suggests near-term earnings cadence followed by stronger H2 .
Balance sheet leverage ticked to 2.9x (net long-term debt/adj. EBITDA); liquidity (~$270–$300M) supports tuck-in M&A and capital deployment .
Cash generation dipped in Q1 on working capital and storm impacts; CapEx & IT capital moderated YoY, consistent with FY spend plan .
Estimates likely adjust for: lower GAAP EPS vs non-GAAP adjusted basis, revised inflation assumption (~2%), and timing of cost leadership benefits .
Near-term trading implications: mixed print (revenue beat, EPS miss) but guidance reaffirmed; medium-term thesis hinges on execution of cost programs, Retail strategy, and integration synergies .

SpartanNash Co (SPTN)·Q1 2025 Earnings Summary