Albertsons Reports 225 Pct Digital Sales Growth

Albertsons Companies, Inc. reported digital sales growth of 225 percent and identical sales growth of 12.3 percent as part of its Q3 fiscal 2020 results, according to a Tuesday (Jan. 12) announcement.

“Our constant focus on our customers continued to drive strong growth and market share gains in the third quarter,” President and CEO Vivek Sankaran said in the announcement. “It is clear that our strategy is working, and as we continue to execute on our strategic priorities, we believe we are well positioned to deliver sustainable growth over the long term.”

Gross profit margin rose to 29.3 percent in the quarter in contrast to 28.3 percent in Q3 fiscal 2019. The metric rose 25 basis points outside of the impact of fuel.

Additionally, interest expense was $115.9 million in Q3 fiscal 2020 in contrast to $154.8 million in Q3 fiscal 2019. According to management, the decline in interest expense was mainly due to “lower average outstanding borrowings and lower average interest rates.”

As for its overall results, Albertsons Companies reported 66 cents in adjusted net income per share on $15.4 billion in sales and other revenue for the quarter. The results exceeded analyst estimates of 42 cents per share in earnings on $15.34 billion.

Albertsons Companies ran just over 2,250 retail food and drug stores with approximately 1,730 pharmacies, 400 associated fuel centers, 22 dedicated distribution hubs, and 20 manufacturing plants. The firm operates stores throughout 34 states and the District of Columbia under brands such as Shaw’s, Jewel-Osco, Vons, Safeway and Albertsons, among others.

The news comes after Albertsons reported 243 percent in digital sales growth and 13.8 percent in identical sales growth for Q2 fiscal 2020. At the time, Albertsons reported 49 cents in reported diluted net income per share on $15.8 billion in sales and other revenue. Those results came out ahead of analyst expectations of 25 cents in earnings on revenue of $15.5 billion.

“We continue to successfully execute against our strategic priorities, which translated into outstanding second-quarter results,” Sankaran said at the time.