Albertsons earnings driven by strong digital sales

Albertsons sales and net earnings soared in its first-ever quarterly earnings report.

The supermarket conglomerate, which filed for an IPO on June 19, reported first-quarter fiscal 2020 sales of $22.8 billion, up 21% from $18.7 billion during the prior-year period. Net earnings increased by a factor of roughly 11 to $586.2 million from $49 million. This substantial growth was driven by a 276% increase in digital sales and a 26.5% jump in same-store sales.

Albertsons also reported COVID-19 related investments of approximately $615 million to support and protect frontline associates and customers, including more than $275 million in appreciation pay and $53 million for hunger relief in our communities

"I am inspired by the many ways my colleagues continue to step up to serve our customers and help our communities around the country during this time of need," said Vivek Sankaran, president and CEO, Albertsons Companies. "Their hard work and dedication have also allowed us to successfully navigate this extraordinary environment and we have accelerated our digital and e-commerce strategy to adapt to market conditions. We generated strong financial performance in the first quarter, including robust cash flow and enhanced liquidity, which support our continued investment to benefit our associates, customers, communities and stockholders."

Albertsons operates 2,252 retail stores with 1,726 pharmacies, 402 associated fuel centers, 23 dedicated distribution centers and 20 manufacturing facilities. The company’s stores predominantly operate under the banners Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, Acme, Shaw’s, Star Market, United Supermarkets, Market Street and Haggen. 

This story originally appeared on Chain Store Age