US Markets
ACI

Albertsons' same-store sales surge on grocery delivery demand

Credit: REUTERS/Fred Prouser

U.S. grocer Albertsons Cos Inc on Monday reported a 26.5% rise in same-store sales in its first quarter as a publicly listed company, driven by demand for home deliveries of groceries during the COVID-19 pandemic.

Adds share price, CEO comment

July 27 (Reuters) - U.S. grocer Albertsons Cos Inc ACI.N on Monday reported a 26.5% rise in same-store sales in its first quarter as a publicly listed company, driven by demand for home deliveries of groceries during the COVID-19 pandemic.

The company's shares, which were listed on the New York Stock Exchange in June, were up about 2% in premarket trading.

Albertsons, one of the largest food and drug retailers in the country, has benefited from a shift toward shopping for groceries online during the virus outbreak, as consumers stay indoors and cook more meals at home.

"We have accelerated our digital and e-commerce strategy to adapt to market conditions," Chief Executive Officer Vivek Sankaran said.

The company's stores, including Albertsons, Safeway, Vons and others, together saw e-commerce sales more than triple during the quarter.

Boise, Idaho-based Albertsons said gross margins rose to 29.8% from 28% a year earlier, due to reduced inventory shrinkage and lower promotional activity.

Net sales and other revenue rose about 21% to $22.75 billion for the first quarter ended June 20.

Net income rose to $586.2 million, or $1 per share, in the reported quarter, from $49 million, or 8 cents per share, a year earlier, when it recorded impairment losses.

On an adjusted basis, the company earned $1.35 per share, 5 cents above analysts' estimates, according to IBES data from Refinitiv.

(Reporting by Nivedita Balu in Bengaluru; Editing by Shounak Dasgupta)

((Nivedita.Balu@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6749 4822/ Twitter: @niveditabalu;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

ACI

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More