BOISE, Idaho — Albertsons posted modest but declining gains in net sales and same-store sales in its second quarter amid deteriorating conditions for the supermarket sector.

Net income in the 12 weeks to September 9 declined 22% to $266.9 million and earnings before interest, taxes and amortization (EBITA) declined for the third consecutive quarter, slipping below $1 billion to $977 million.

Identical sales increased 2.9% year-over-year, and net sales and other revenue increased to $18.3 billion from $17.9 billion a year ago.

Digital sales increased 19%, Albertsons said. Compared with a year ago, loyalty membership was up 17% to 37.4 million members.

“During the second quarter, we continued to execute against our ‘Customers for Life’ transformation strategy and drive solid operating results, despite increasing macroeconomic headwinds,” CEO Vivek Sankaran said in a statement.

Sankaran said he expects those headwinds will continue influencing the cost of doing business and consumer behavior through the balance of the retailer’s fiscal year.

“We also expect slowing food inflation, ongoing labor investment, broad inflationary cost increases and significant declines in COVID-19 vaccination and test kit revenue. We continue to partially offset these headwinds with the benefits of our productivity initiatives.”

Added Sankaran: “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.

Looking ahead, Albertsons  said, the company will remained focused on implementing its productivity initiatives, attracting and retaining qualified employees, negotiating acceptable contracts with labor unions, and working to close the proposed merger with The Kroger Co.

“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,” Sankaran said.