Albertsons Reports Modest Sales Gains In Q2
Albertsons Companies reported modest sales growth during its fiscal year second quarter as the grocer reported increases in identical sales and digital sales.
For the quarter ended September 7, net sales and other revenue were $18.6 billion, up 1.6% from net sales and revenue of $18.3 billion in the comparable quarter the previous year.
According to the company, the increase was driven by our 2.5% increase in identical sales, with strong growth in pharmacy sales driving the identical sales increase. Albertsons also continued to grow its digital sales with a 24% increase during the second quarter of fiscal 2024. The increase in net sales and other revenue was partially offset by lower fuel sales.
Net income was $145.5 million, or $0.25 per share, during the second quarter of fiscal 2024, compared to $266.9 million, or $0.46 per share, during the second quarter of fiscal 2023.
"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 Vivek Sankaran, Albertsons CEO. "We also drove strong year-over-year growth in our loyalty members and omnichannel shoppers and accelerated growth in our Albertsons Media Collective.”
According to information from Placer.ai, year-over-year visits at Albertsons in the quarter were down 1.4% when compared to the comparable period the previous year. Placer.ai officials said this modest decline possibly reflects financial challenges consumers face in the grocery aisles.
The report from Placer.ai did note that foot traffic at Albertsons stores was higher than pre-pandemic levels, with visits in the most recent quarter up 10.8% when compared to 2019.
Looking ahead, Sankaran said Albertsons expects to see continuing headwinds related to investments in associate wages and benefits, an increasing mix of its pharmacy and digital businesses, which carry lower margins, and an increasingly competitive backdrop.”
