BOISE, Idaho — Albertsons Cos. reported Monday that its identical store sales for the second quarter were up 1.5% year-over-year, and 15.3% on a two-year stacked basis. Digital sales increased 5%, or 248% on a two-year stacked basis.

Sales and other revenue totaled $16.5 billion for the 12 weeks ended September 11, up from $15.8 billion during the prior year period. The increase was primarily driven by the Company’s 1.5% increase in identical sales and higher fuel sales.

“We are pleased with our second-quarter results as we continue to execute our transformation strategy,” Albertsons Cos. CEO Vivek Sankaran said on Monday. “The favorable consumer backdrop together with our focus on in-store excellence, accelerating our digital and omni-channel capabilities, increasing productivity and strengthening our talent and culture, are driving increased identical sales and improved performance. Based on this strong performance, today we announced a 20% increase to our quarterly dividend, and have raised our fiscal year 2021 outlook.”

Selling and administrative expenses were 25.6% of sales during the second quarter of fiscal 2021 and the second quarter of fiscal 2020. Excluding the impact of fuel, selling and administrative expenses as a percentage of sales increased 55 basis points. The increase in selling and administrative expenses was primarily attributable to employee costs, depreciation and other expenses related to the company’s investments in its digital and omni-channel capabilities and strategic priorities. These increases were partially offset by lower COVID-19 related expenses and the execution of productivity initiatives. As it relates to the year-over-year increase in employee costs, labor related to the reopening of certain fresh departments, market-driven wage rate increases and higher equity-based compensation expense drove this increase.

Net income was $295.2 million, or $0.52 per Class A common share, during the second quarter of fiscal 2021 compared to $284.5 million, or $0.49 per Class A common share, during the second quarter of fiscal 2020.

Adjusted net income was $369.5 million, or $0.64 per Class A common share, during the second quarter of fiscal 2021 compared to $356.4 million, or $0.60 per Class A common share, during the second quarter of fiscal 2020.

Adjusted EBITDA was $965.4 million, or 5.8% of sales, during the second quarter of fiscal 2021 compared to $948.4 million, or 6.0% of sales, during the second quarter of fiscal 2020. The increase in Adjusted EBITDA was primarily attributable to the company’s higher sales, partially offset by higher selling and administrative expenses.

The company’s updated fiscal 2021 outlook now anticipates:

• Identical sales in fiscal 2021 in the range of (2.5%) to (3.5%) (previously (5%) to (6%)), representing two-year stacked growth of 13.4% to 14.4% (previously 10.9% to 11.9%)
• Adjusted net income per Class A common share in the range of $2.50 to $2.60 per share (previously $2.20 to $2.30 per share)
• Adjusted EBITDA in the range of $3.950 billion to $4.050 billion (previously $3.7 billion to $3.8 billion)
• An effective tax rate in the range of 23% to 24% (previously 25%)
• Capital expenditures in the range of $1.9 billion to $2.0 billion (unchanged)