Albertsons reports strong Q2 results
Despite facing inflationary and consumer headwinds, Albertsons reported strong results for the second quarter of fiscal 2022, which ended Sept. 10.
Albertsons' net income during the second quarter was $342.7 million, or 59 cents per share compared to $295.2 million, or 52 cents per share, during the second quarter of fiscal 2021.
Adjusted net income was $418.3 million, or 72 cents per share, during the second quarter of fiscal 2022 compared to $369.5 million, or 64 cents per share, during the prior year period.
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Adjusted EBITDA was $1.05 billion, or 5.9% of net sales and other revenue, during the second quarter of fiscal 2022 compared to $965 million, or 5.8% of net sales and other revenue, during the second quarter of fiscal 2021.
The retailer's identical sales increased by 7.4% and digital sales increased by 36% during the second quarter. The retailer also reported that loyalty members increased by 16% to 31.8 million.
"Our team continued to deliver strong performance during the second quarter," Vivek Sankaran, CEO, said. "Throughout the quarter, we continued to invest in our digital transformation, our differentiation in Fresh and the modernization of our capabilities. As we look ahead to the balance of the year, we believe we are well-positioned to further accelerate in each of these areas, as we continue to roll out our Customers for Life strategy. With ongoing productivity to support our investments and to cushion inflationary and consumer headwinds, we will continue to prioritize our investments in deepening our relationships with our customers and communities. Our teams' commitment to serving our customers is driving our performance while furthering our purpose to bring people together around the joys of food and to inspire well-being."
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Albertsons reported net sales and other revenue was $17.9 billion for the second quarter compared to $16.5 billion during the same period in 2021. The increase was driven by the company's 7.4% increase in identical sales and higher fuel sales, with retail price inflation driving the identical sales increase, Albertsons said.
Albertsons' gross margin rate decreased to 27.9% during the second quarter of fiscal 2022 compared to 28.6% during the same period in the prior period. Excluding the impact of fuel and LIFO expense, gross margin rate decreased 43 basis points compared to the second quarter of fiscal 2021. The decrease was primarily driven by increases in product and supply chain costs, increases in picking and delivery costs related to the growth in digital sales and fewer COVID-19 vaccines in the second quarter of fiscal 2022. The decrease was partially offset by the benefits of ongoing productivity initiatives, the company said.