In the first quarter, Albertsons Cos. posted an identical sales gain and topped Wall Street’s earnings and revenue estimates, but profits declined.
Net income was $236.4 million, or 41 cents per diluted share, versus $240.7 million, or 41 cents per diluted share, in the year-previous quarter. Adjusted for one-time events, net income was $318.9 million, or 55 cents per diluted share, versus $391.6 million, or 66 cents per diluted share, in the period a year before, the company stated.
An analyst consensus estimate published by Yahoo Finance called for earnings per adjusted diluted share of 54 cents on revenue of $24.69 billion.
Overall revenue increased to $24.88 billion from $24.27 billion in the year-prior quarter, driven by a 2.8% increase in identical sales. Digital sales gained 25% in the period year over year, Albertsons noted. Operating income slipped to $449.3 million from $459.6 million in the year-earlier quarter.
Albertsons updated its identical sales growth outlook for the current fiscal year to a range of 2% to 2.75% versus the previous 1.5% to 2.5%. The company reported other major metrics as unchanged.
“In the first quarter, we delivered solid operating and financial performance, while investing in our core operations and improving our customer value proposition,” said Susan Morris, Albertsons’ CEO, in announcing the financial results. “Ongoing investments in our strategic priorities drove increased engagement across our digital platforms, evidenced by strong growth in our digital sales, pharmacy operations, and membership in our loyalty program. To fuel these investments, we leveraged our productivity engine to drive efficiencies throughout our operations. As we look forward to the balance of fiscal 2025, we do so with continued confidence in our Customers for Life strategy.”
