Albertsons Companies, Inc. Reports First Quarter Fiscal 2025 Results

Albertsons Companies, Inc. has released its financial results for the first quarter of fiscal 2025, which ended on June 14, 2025. The company, a leading food and drug retailer in the United States, operates 2,264 retail stores across 35 states and the District of Columbia under various well-known banners.

Financial Highlights

For the first quarter of fiscal 2025, Albertsons reported:

• Net sales and other revenue increased by 2.5% to $24.88 billion, up from $24.27 billion in the same period last year.
• Net income was $236 million, or $0.41 per share, compared to $240.7 million, or $0.41 per share, in the first quarter of fiscal 2024.
• Adjusted net income was $319 million, or $0.55 per share, down from $391.6 million, or $0.66 per share, in the previous year.
• Adjusted EBITDA was $1.11 billion, representing 4.5% of net sales and other revenue, compared to $1.18 billion, or 4.9%, in the prior year.

Business and Operational Highlights

Albertsons saw a 2.8% increase in identical sales, driven primarily by strong growth in pharmacy sales. Digital sales surged by 25%, and the number of loyalty members grew by 14% to 47.3 million. However, the gross margin rate decreased to 27.1% from 27.8% in the previous year, mainly due to investments in customer value propositions and increased delivery and handling costs.

Strategic Initiatives and Corporate Developments

During the first quarter, Albertsons completed 36 store remodels, opened three new stores, and continued to invest in its digital and technology platforms. The company also repurchased 14.2 million shares of common stock for $314.8 million under its $2.0 billion repurchase authorization. Additionally, Albertsons issued $600 million in senior unsecured notes and used the proceeds to redeem $600 million of outstanding notes due in 2026.

Management's Perspective

Susan Morris, Chief Executive Officer, commented, "In the first quarter, we delivered solid operating and financial performance, while investing in our core operations and improving our customer value proposition. Ongoing investments in our strategic priorities drove increased engagement across our digital platforms, evidenced by strong growth in our digital sales, pharmacy operations, and membership in our loyalty program."

Future Outlook

Albertsons has updated its fiscal 2025 outlook, expecting identical sales growth in the range of 2.0% to 2.75%, adjusted EBITDA between $3.8 billion and $3.9 billion, and adjusted net income per share between $2.03 and $2.16. The company also anticipates capital expenditures in the range of $1.7 billion to $1.9 billion.

SEC Filing: Albertsons Companies, Inc. [ ACI ] - 8-K - Jul. 15, 2025