Eden Prairie-Based Supervalu Sees Big Stock Gains

Supervalu, the Eden Prairie-based grocery store chain that just a year ago appeared to be in deep financial trouble, recently saw its stock price jumped almost 20 percent.

The gains were driven by the company's recent first quarter earnings report, according to Twin Cities Business Magazine, which more than doubled analysts' predictions. The company saw earnings grow to $85 million, or $0.34 per share, up from $41 million, or $0.19 per share, the same time last year—a jump of 107 percent. Analysts had predicted only a $0.08 per share increase in earnings. 

The company is still struggling to stem losses, reporting $105 million net loss this quarter versus $18 million last year. The company tryed to staunch the bleeding by selling over $3 billion is assets. It kept its food-distribution business, Save-A-Lot discount stores and a handful of retail banners, including Cub Foods in the Twin Cities.

In May, Supervalu cut 1,100 positions nationwide, as well as 600 in Minnesota. The jobs cut were mostly at corporate offices. No longer will Supervalu's Eden Prairie headquarters make marketing and advertising decisions for all stores with each chain now making those decisions itself, according to the Pioneer Press.

New CEO Sam Duncan said those layoffs are now "substantially complete," the newspaper reported.