Albertsons (ACI) tops consensus estimates despite challenging backdrop

Albertsons (NYSE: ACI) reported its latest quarterly earnings before the open on Tuesday, topping consensus expectations.

Albertsons reported Q3 EPS of $0.79, $0.14 better than the analyst estimate of $0.65, while revenue for the quarter came in at $18.6 billion, compared to $18.2 billion in 2022, and above the consensus estimate of $18.36 billion.

The company said identical sales increased by 2.9%, while digital sales rose by 21%. In addition, loyalty members grew by 17% to 38.5 million. ACI's sales growth was driven by its 2.9% increase in identical sales, with strong growth in pharmacy sales driving the identical sales increase.

"We delivered another solid quarter amidst a challenging economic backdrop," said Vivek Sankaran, Albertsons' CEO.

"While we are benefiting from our productivity initiatives, we expect to continue to see the impacts of investments in associate wages and benefits, cycling significant prior year food inflation, customers receiving less government assistance, the resumption of student loan payments, and other types of payment deferrals, inflationary cost increases and the outsized growth of our pharmacy and digital businesses as we continue to lean into increased customer engagement in our Customers for Life strategy," he added.

By Sam Boughedda

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