In the third quarter, technology and digital sales helped Albertsons advance revenues, identical sales and adjusted income as it beat a Wall Street estimate on profits, although the company came up a little short on revenue.
Net income was $293.3 million, or 55 cents per diluted share, versus $400.6 million, or 69 cents per diluted share, in the year-prior period. Adjusted for one-time events, net income was $390.3 million, or 72 cents per diluted share, compared to $420.3 million, or 71 cents per diluted share, in the period a year-earlier, the company reported.
A Zacks Investment Research analyst consensus estimate called for earnings per adjusted diluted share of 67 cents in the quarter and revenues of 19.16 billion.
Albertsons noted that identical sales increased 2.4% year over year, with digital sales up 21%.
Net revenue increased to $19.12 billion versus $18.77 billion in the year-before quarter. The 2.4% increase in ident drove the increase, partially offset by a net revenue reduction from store closures and lower fuel sales. In addition, the temporary Federal government shutdown that ended in November and related delayed SNAP funding during the third quarter negatively impacted identical sales by 10 to 20 basis points. Operating income was $489.7 million versus $518.5 million in the year-previous period.
“In the third quarter, we delivered solid results and continued to advance our strategic priorities,” said Susan Morris, Albertsons CEO, in announcing the financial results. “Our investments in technology and AI are fundamentally reshaping how we operate and serve our customers, driving smarter decisions, greater efficiency and more personalized experiences. Growth in our digital and pharmacy channels, combined with disciplined execution and targeted investments, is strengthening our value proposition and positioning us for success. As we look ahead, I am confident that our modernized technology foundation, relentless focus on productivity and commitment to innovation will enable us to deliver sustainable long-term value for our customers, associates and shareholders.”
