Retailer raises earnings guidance for fiscal year
BOISE, Idaho — Albertsons Cos. reported $21.3 billion in revenue for the first quarter, down from $22.8 billion during the same quarter last year. That decline was primarily driven by a 10% decrease in identical store sales, caused by reduced demand compared to the pandemic-induced surge in last year’s quarter.
On a two-year stacked basis, identical sales grew by 16.5%. Albertsons also reported that it sustained digital sales levels in the first quarter, and on a two-year stacked basis digital sales growth was 276%.
The company has raised its earnings forecast for the fiscal year and is now projecting adjusted net income in the range of $2.20 to $2.30 per share, up from $1.95 to $2.05 per share.
“We had a strong start to the year as we continued to execute our strategy,” Albertsons president and CEO Vivek Sankaran said of the company’s results. “Our performance is clear evidence of the structural enhancements we have made to our business, as well as our ability to retain market share gains compared to pre-pandemic levels. We are closer to our customers than ever before, and are well-positioned for continued success as we execute on our strategic priorities, leveraging our strengths in fresh, Own Brands and our accelerating digital transformation.”
Net income was $444.8 million ($0.78 per Class A common share), during the first quarter of fiscal 2021, compared to $586.2 million ($1.00 per Class A common share), during the 2020 first quarter of fiscal 2020. Adjusted net income was $517.5 million, compared to $801.2 million in the comparable prior-year period.
During the first quarter of fiscal 2021, the Company spent $513.4 million in capital expenditures, which included investments in digital and technology, the opening of five new stores and the completion of 33 store remodels. The company also paid its quarterly dividend of $0.10 per share, and said it would pay its next quarterly dividend of on August 10 to stockholders of record as of July 26.