US-based grocery store chain Albertsons Companies has reported that its net sales and other revenue for the second quarter (Q2) of fiscal year (FY) 2023 was $18.3bn, up from $17.9bn in the same period of FY22.
During the 12 weeks to 9 September 2023, the company’s identical sales increased by 2.9% and digital sales were up 19%.
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Albertsons recorded a net income of $266.9m in Q2 FY23, down from $342.7m in the same period a year ago.
Its earnings per share for the period were $0.46 compared to $0.59 in Q2 FY22.
The retailer posted adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of $976.9m, which accounted for 5.3% of net sales and other revenue.
Over the quarter, the gross margin rate of Albertsons dropped to 27.6%, compared to 27.9% a year ago.
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By GlobalDataIts selling and administrative expenses in Q2 FY23 accounted for 25.1% of net sales and other revenue, compared to 25.0% in the prior year’s quarter.
The retailer had 2,272 retail food and drug stores as of 9 September 2023.
Albertsons CEO Vivek Sankaran said: “During the second quarter, we continued to execute against our Customers for Life transformation strategy and drive solid operating results, despite increasing macro-economic headwinds. We want to thank all our teams for their commitment to our customers and communities.”
“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.”
He added: “We are also mindful of a more challenging economic backdrop, including declining federal and state government assistance and higher interest rates and their effects on consumer spending and our business. We also expect slowing food inflation, ongoing labour investment, broad inflationary cost increases and significant declines in Covid-19 vaccination and test kit revenue.”
