Albertsons Profit Falls In Q2, Sets $1.5 Billion Savings Goal

Albertsons Companies Inc.ACIreported better-than-expected first-quarter earnings and sales Tuesday morning, but shares remained relatively flat amid margin pressureand a dip in cash reserves.The company registered quarterly adjusted earnings per share of 55 cents, beating the analyst consensus estimate of 53 cents.Quarterly sales of $24.88 billion (+2.5% year over year) outpaced the street view of $24.716 billion.Identical sales increased 2.8%, driven by strong growth in pharmacy sales, while digital sales surged 25%, reflecting robust consumer engagement online.Also Read:‘Are You Really Free If Your Groceries Are So Expensive You Can’t Afford Them?’ Asks Former FTC Chair Lina Khan, Challenging Corporate PowerLoyalty program membership grew 14%, reaching 47.3 million members.Gross margin rate decreased to 27.1% during the first quarter of fiscal 2025 compared to 27.8% during the first quarter of fiscal 2024. Excluding the impact of fuel and LIFO expense, the gross margin rate decreased 85 basis points compared to the first quarter of fiscal 2024.Net gain on property dispositions and impairment losses was $31.9 million during the quarter, wider than the net loss of $5.3 million in the year-ago period.Adjusted EBITDA declined to $1.11 billion in Q1 FY25 from $1.18 billion a year earlier. Adjusted EBITDA margin slipped to 4.5% from 4.9% year-over-year.Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100.Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get StartedThe company exited the quarter with cash and equivalents of $151 million, significantly lower than the $293.6 million reported on February 22, 2025.Dividend:On July 15, the company announced the next quarterly dividend payment of $0.15 per share, payable on August 8, 2025, to stockholders of record as of the close of business on July 25, 2025.Outlook:Albertsons reaffirmed its FY25 adjusted EPS outlook of $2.03–$2.16, in line with estimates. It raised its identical sales growth forecast to 2%–2.75% from the prior 1.5%–2.5% range.“As we look forward to the balance of fiscal 2025, we do so with continued confidence in our Customers for Life strategy,” said CEOSusan Morris.In a separate presentation, the companystated that it willdeliver$1.5 billion in savings overFY25-FY27.Price Action:ACI shares are trading higher by 0.09% to $22.15 premarket at last check on Tuesday.Loading...Loading...Read Next:Coach Parent Tapestry Ups Investment In Recycled Leather Pioneer Gen PhoenixPhoto: ShutterstockACIAlbertsons Companies Inc$20.61-6.89%Stock Score Locked: Want to See it?Benzinga Rankings give you vital metrics on any stock – anytime.Reveal Full ScoreEdge RankingsMomentum64.46Growth98.46Quality53.24Value43.49Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs© 2025 Benzinga.com. . .EarningsAnalyst RatingsOptionsDividendsIPOsDate▲▼ticker▲▼name▲▼Actual EPS▲▼EPS Surprise▲▼Actual Rev▲▼Rev Surprise▲▼Click to see moreEarningsupdatesEarnings CalendarNever Miss Important CatalystsSort by estimates, projected upside, profit surprises, and more to easily find new stocks to invest in or check up on your portfolio.Click to JoinPosted In:EarningsNewsMovers