SuperValu (NASDAQ:SVU) said sales during its fiscal first quarter dropped to $10.6 billion, compared to $11.1 billion during the same quarter last year. Earnings for the quarter also tumbled to $41 million, down from $74 million last year.
Worse, the supermarket chain announced that it would suspend its dividend, slash capital spending and was conducting a strategic review of its options, Fox Business noted.
Investors hammed the company shares, driving them down more than 46% in Thursday afternoon trading.
The company withdrew is previously stated financial outlook, worrying analysts and causing Standard & Poor’s to put its credit on a negative watch.
An analyst at Credit Suisse (NYSE:CS) warned that SuperValu could become “the next casualty in the troubled supermarket space” and advised against acquiring its shares.
Other analysts said the company would likely try to sell itself.