Albertsons Reports Solid Q1 Performance, Boosts Sales Outlook
Albertsons' first-quarter sales rose more than 2%, fueled by a bump in identical sales and growth in its pharmacy business.
For the 16 weeks ended June 14, companywide sales totaled $24.9 billion, up 2.5% from the comparable quarter the previous year. Adjusted net income for the quarter was $318.9 million, or $0.55 per share, down from a net income of $391.6 million, or $0.66 per share, during the first quarter of fiscal 2024. Identical sales were up 2.8%, and digital sales increased 25%.
"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, company CEO. "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."
During the first quarter, capital expenditures were $584.6 million, which primarily included the completion of 36 remodels, the opening of three new stores, and continued investment in Albertsons' digital and technology platforms.
The grocer has updated its fiscal 2025 outlook and is now forecasting identical sales growth of between 2% and 2.75%, up from previous guidance of 1.5% to 2.5% growth. Capital expenditures will remain in the range of $1.7 billion to $1.9 billion.
"As we look forward to the balance of fiscal 2025, we do so with continued confidence in our Customers for Life strategy," Morris said. "We want to thank our teams for delivering these results and for their ongoing commitment to serving our customers and supporting the communities in which we operate."
As of June 14, Albertsons operated 2,264 retail stores with 1,725 in-store pharmacies, 408 associated fuel centers, 22 dedicated distribution centers, and 19 manufacturing facilities across 35 states and the District of Columbia.
