With the blockbuster announcement that the company is preparing to merge with The Kroger Co.just days behind it, Albertsons Cos. announced identical store sales and earning advances in the second quarter.
Adjusted earnings per share topped a MarketBeat-published analyst consensus earnings per share estimate by seven cents, and the company surpassed a $17.7 billion revenue estimate as well.
Identical store sales increased by 7.4%, according to Albertsons. Inflation helped drive the identical sales, the company acknowledged. The gain in idents and higher fuel sales helped push net sales and other revenue to $17.92 billion during the quarter compared to $16.51 billion in the year-prior period. Operating income was $531 million versus $485.9 million in the period a year earlier.
Albertsons added that digital sales increased 36% and that loyalty members increased 16% to 31.8 million in the quarter year over year.
“Our team continued to deliver strong performance during the second quarter,” said Vivek Sankaran, Albertsons CEO, in announcing the financial results. “Throughout the quarter, we continued to invest in our digital transformation, our differentiation in Fresh, and the modernization of our capabilities. As we look ahead to the balance of the year, we believe we are well-positioned to further accelerate in each of these areas, as we continue to roll out our Customers for Life strategy. With ongoing productivity to support our investments and to cushion inflationary and consumer headwinds, we will continue to prioritize our investments in deepening our relationships with our customers and communities. Our teams’ commitment to serving our customers is driving our performance while furthering our purpose to bring people together around the joys of food and to inspire well-being.”
On October 13, Albertsons entered into an agreement and plan of merger with Kroger under which Kroger will acquire all outstanding Albertsons common and preferred stock on an as-converted basis for an estimated total consideration of $34.10 per share, the companies announced. As of September 10, Albertsons operated 2,272 retail food and drug stores with 1,722 pharmacies, 402 associated fuel centers, 22 dedicated distribution centers and 19 manufacturing facilities.
