Albertsons Sees Strong Q1, Ecommerce and Private Brands Highlighted
Albertsons Cos. has reported a 1.5 percent increase in identical sales for the first quarter of fiscal 2019, ending June 15. Digital and ecommerce sales grew 33 percent, while the grocer's private-brand sales penetration reached 25.3 percent, up just slightly from 25.2 percent in the fourth quarter.
The Boise, Idaho-based grocer's net income was $49 million for first quarter, compared with a net loss of $17.7 million in first quarter 2018.
"I am pleased with the position of our business at Albertsons Cos.," said Vivek Sankaran, who was appointed president and CEO in March. "Identical sales were positive for the sixth consecutive quarter, and we continue to expand our ecommerce and digital capabilities. We are focused on our sales momentum and will continue to elevate the end-to-end customer experience as we work to create a next-generation food retailer. We recognize the ever-changing retail consumer and are working swiftly to adapt our business to allow customers to shop with us whenever, wherever and however they want."
During the first quarter, Albertsons invested approximately $362 million in capital expenditures, including ecommerce and digital capabilities, 28 remodel projects, and the opening of six stores.
Sales and other revenue increased 0.5 percent to $18.74 billion, compared with $18.65 billion during the first quarter of fiscal 2018. The identical-sales increases were partly offset by reductions from store closures in 2018 and first quarter 2019. Gross profit margin increased to 28 percent from 27.7 percent over the same time period.
Adjusted EBITDA increased 7.5 percent to $876.8 million, or 4.7 percent of sales, compared with $815.8 million, or 4.4 percent of sales, during the first quarter of fiscal 2018.
Albertsons Cos. operates stores across 35 states and the District of Columbia under 20 well-known banners, including Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen and Carrs, as well as meal-kit company Plated. The company is No. 3 on Progressive Grocer's 2019 Super 50 list of the top grocers in the United States.