Albertsons Sees Modest Sales Growth In Q3
Third quarter net sales at Albertsons Companies were up just more than 1% as the grocer reported growth in identical sales along with gains in digital sales.
For the quarter ended November 30, net revenue was up 1.2% to $18.8 billion. The increase was driven by a 2% increase in identical sales, with strong growth in pharmacy sales being the primary driver of the identical sales increase. The grocer also continued to grow its digital sales with a 23% increase during the third quarter of fiscal 2024. The increase in net sales and other revenue was partially offset by lower fuel sales.
Net income for the quarter was $400.6 million, or $0.69 per share, during the third quarter of fiscal 2024, compared to $361.4 million, or $0.62 per share, during the third quarter of fiscal 2023. The third quarter of fiscal 2024 included the $81 million or $0.14 per share benefit related to certain discrete state income tax benefits related to the settlement of audits.
"We delivered solid operating and financial performance in the third quarter of fiscal 2024 in an environment where the consumer remains cautious," said Vivek Sankaran, CEO of Albertsons. "Investments in our Customers for Life strategy drove increased digital engagement across our platforms, evidenced by strong growth in our digital sales, pharmacy operations, and membership in our loyalty program."
During the first 40 weeks of fiscal 2024, capital expenditures were $1.4 billion, which primarily included the completion of 84 remodels, the opening of nine new stores, and continued investment in the company’s digital and technology platforms.
Looking ahead, Sankaran said the company is energized about its plans to accelerate growth through its Customers for Life strategy, leveraging investments to enhance digital engagement and omnichannel revenue growth, improve its value proposition with customers, and drive digital media growth.
