Grocery retailer Albertsons Companies has announced a significant decline in net income for the first quarter (Q1) of fiscal year 2024 (FY24), with figures falling to $240.7m compared to $417.2m in Q1 FY23.
The company’s earnings per share also decreased to $0.41 from $0.72 over the quarter.
Go deeper with GlobalData
During the 16 weeks ending 15 June 2024, the company’s net sales and other revenue slightly increased to $24.26bn from $24.05bn year-on-year.
This marginal growth was attributed to a 1.4% rise in identical sales, bolstered by robust pharmacy sales.
Digital sales also saw a notable increase, rising 23% during the quarter.
Albertsons’ gross margin rate experienced a slight uptick to 27.8% in Q1 FY24, up from 27.7% in the corresponding quarter of the previous fiscal year.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataSelling and administrative expenses rose to 25.9% of net sales and other revenue, compared to 25.0% in Q1 FY23.
This increase was largely due to higher operating expenses linked to the enhancement of digital and omnichannel capabilities, merger-related costs, elevated employee and store occupancy costs and additional third-party security services.
Albertsons reported a net loss on property dispositions and impairment losses of $5.3m in Q1 FY24, a decrease from $27.6m in the first quarter of fiscal 2023.
Albertsons CEO Vivek Sankaran said: “In the first quarter of fiscal 2024, we continued to invest in our Customers for Life strategy and the digital and omnichannel capabilities necessary to support it.
“Our Customers for Life strategy is placing the customer at the centre of everything we do, and we continued to drive strong year-over-year growth in loyalty members as we launched our new simplified ‘for U’ loyalty programme. Amidst an evolving economic and industry backdrop, we continued to deliver outsized growth in our digital and pharmacy businesses.
“As we look ahead to the balance of fiscal 2024, we expect to see continuing headwinds related to investments in associate wages and benefits, an increasing mix of our pharmacy and digital businesses which carry lower margins, and the cycling of prior year food inflation. We expect these headwinds to be partially offset by ongoing productivity initiatives.”
In April 2024, Kroger and Albertsons amended their store divestiture plan and agreed to sell 166 additional stores to C&S Wholesale Grocers.
