Albertsons Sees Bump In Q2 Revenue
Second quarter net sales at Albertsons Companies were up, driven in part by an increase in identical sales and double-digit growth in digital sales.
For the quarter ended September 9, net sales and other revenue were $18.3 billion, an increase over 2022 second quarter sales of $17.9 billion.
Company officials said the increase was driven by a 2.9% increase in identical sales, with strong growth in pharmacy sales, a 19% increase in digital sales, and retail price inflation across most categories being the primary contributors to the identical sales increase. The increase in net sales and other revenue was partially offset by lower fuel sales.
RELATED: C&S Wholesale to Acquire 400+ Kroger, Albertsons Locations
"During the second quarter, we continued to execute against our Customers for Life transformation strategy and drive solid operating results, despite increasing macroeconomic headwinds,” said Vivek Sankaran, Albertsons CEO. "As we look ahead to the balance of the year, our focus remains the same – advancing operational excellence in our stores, driving growth in our digital and pharmacy operations, and deepening our relationships with our customers."
Net income was $266.9 million, or $0.46 per share, during the second quarter of fiscal 2023. Net income was $342.7 million, or $0.59 per share, during the second quarter of fiscal 2022.
During the first 28 weeks of fiscal 2023, capital expenditures were $1.1 billion, which primarily included the completion of 80 remodels, the opening of three new stores and continued investment in the company’s digital and technology platforms.
Looking ahead, Sankaran said Albertsons is mindful of the continued economic headwind facing consumers, including declining federal and state government assistance and higher interest rates, and their effects on consumer spending.
“We also expect slowing food inflation, ongoing labor investment, broad inflationary cost increases and significant declines in COVID-19 vaccination and test kit revenue,” he said. “We continue to partially offset these headwinds with the benefits of our productivity initiatives."