Albertsons Cos. Reports Strong Q3 Performance
Albertsons Cos., the Boise-based grocery store chain, has reported strong financial results for the third quarter, driven by robust growth in digital and pharmacy sales. Despite consumer pressures, the company's revenue witnessed an increase.
In the quarter ended December 2, Albertsons Cos. recorded a profit of $361.4 million, translating to 62 cents per share. This compares favorably to the previous year's figures of $375.5 million and 70 cents per share. Notably, the adjusted per-share earnings amounted to 79 cents, surpassing analysts' projections of 65 cents.
With revenue climbing to $18.56 billion from $18.15 billion in the same period last year, Albertsons Cos. exceeded analysts' expectations of $18.36 billion. Moreover, identical sales, which exclude the impact of store openings and closures, experienced a healthy increase of 2.9%.
Digital sales emerged as a significant growth driver for the company, registering an impressive 21% year-on-year growth during the period.
While Albertsons Cos. witnessed strong performance, its pharmacy business stood out by growing at a faster rate than the overall business. However, this growth led to decreased gross margins due to increases in shrink and other factors.
Looking ahead, Chief Executive Vivek Sankaran anticipates challenges arising from reduced government benefits and the resumption of student loan payments. Nonetheless, Albertsons Cos. remains well-positioned to navigate these circumstances.
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