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BOISE, Idaho — Albertsons Cos. posted an slight increase in net sales for the first quarter of fiscal 2024, which ended June 15, 2024.
Net sales and other revenue was $24.3 billion for the 16 weeks period, compared to $24.1 billion for the comparable period last year. The company said the increase was driven by a 1.4% increase in identical sales, with strong growth in pharmacy sales driving the identical sales increase. Albertsons also continued to grow its digital sales, which increased 23% increase during the quarter. The increase in net sales and other revenue was partially offset by lower fuel sales.
"In the first quarter of fiscal 2024, we continued to invest in our Customers for Life strategy and the digital and omnichannel capabilities necessary to support it," Albertsons CEO Vivek Sankaran said. "Our Customers for Life strategy is placing the customer at the center of everything we do, and we continued to drive strong year-over-year growth in loyalty members as we launched our new simplified 'for U' loyalty program. Amidst an evolving economic and industry backdrop, we continued to deliver outsized growth in our digital and pharmacy businesses."
Net income was $240.7 million, or $0.41 per share, during the first quarter of fiscal 2024. That compares to net income of $417.2 million, or $0.72 per share, during the first quarter of fiscal 2023, which included the $49.7 million, or $0.09 per share, benefit related to the reduction in the reserve for an uncertain tax position.
Adjusted net income was $391.6 million, or $0.66 per share, during the first quarter of fiscal 2024 compared to $545.7 million, or $0.93 per share (which includes the tax benefit discussed above), during the first quarter of fiscal 2023.
During the first 16 weeks of fiscal 2024, Albertsons Cos. reported capital expenditures of $543.0 million, which primarily included the completion of 17 remodels, the opening of one new store and continued investment in its digital and technology platforms.
"As we look ahead to the balance of fiscal 2024, we expect to see continuing headwinds related to investments in associate wages and benefits, an increasing mix of our pharmacy and digital businesses which carry lower margins, and the cycling of prior year food inflation. We expect these headwinds to be partially offset by ongoing productivity initiatives."
