Albertsons Q2 sales growth exceeds projections
Boise-based grocery conglomerate Albertsons Companies beat Wall Street analyst expectations with second quarter revenue and same-store sales.
For the second quarter of fiscal 2024, Albertsons reported net income of $146 million, or $0.25 per share, down 45% from $266.9 million, or $0.46 per share, during the second quarter of fiscal 2023.
The company cited higher selling and administrative expenses related to items such as its ongoing merger effort with Kroger (more information below), developing digital and omnichannel capabilities, and higher employee costs.
Same-store sales increased 2.5%. Net sales and other revenue was $18.6 billion during the quarter, up roughly 2% compared to $18.3 billion and ahead of Wall Street projections of $18.5 billion. In addition to a same-store sales jump, Albertsons also attributed the growth to a 24% year-over-year increase in digital sales.
Memberships in Albertsons' streamlined loyalty program increased 15% to 43 million.
"In the second quarter of fiscal 2024, investments in our Customers for Life strategy continued to drive strong growth in our digital sales and pharmacy operations," said CEO Vivek Sankaran. "We also drove strong year-over-year growth in our loyalty members and omnichannel shoppers, and accelerated growth in our Albertsons Media Collective. We want to thank our teams for their ongoing commitment to serving our customers and supporting the communities in which we operate."
Albertsons is in the midst of legal wranglings regarding a proposed $25 billion merger with fellow grocery giant The Kroger Co. Kroger recently filed a motion for a preliminary injunction against a Federal Trade Commission (FTC) challenge to the merger proposal.
[READ MORE: Kroger files to block FTC challenge to proposed $25 billion Albertsons merger]
The company did not provide financial guidance.
As of Sept. 7, 2024, Albertsons Companies operated 2,267 retail food and drug stores with 1,726 pharmacies, 405 associated fuel centers, 22 dedicated distribution centers and 19 manufacturing facilities. The Company operates stores across 34 states and the District of Columbia under more than 20 well known banners including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings Food Markets and Balducci's Food Lovers Market.
