Albertsons Announces Q2 Fiscal Results, Cites Burgeoning Online Growth
BOISE, ID – Affirming its commitment to expansion online and on-ground, Albertsons Companies LLC has reported Q2 fiscal results for the period ending September 9, 2017. The company cited accelerated online growth and continued efforts to expand its Own Brands line as highlights of the quarter.
"We remain focused on our customers' needs by providing full, fresh, friendly, and clean stores and have accelerated the expansion of our ecommerce and digital offerings," said Bob Miller, Chairman and CEO. "With the expansion of home delivery and click-and-collect, together with the acquisition of Plated, we are making progress in serving our customers wherever, whenever, and however they want to purchase food. Our identical store sales continued to improve sequentially over the last two quarters, as deflationary pressures have lessened and our merchandising plans were tailored to meet our customers' needs. In addition, we continue to add innovative products to our Own Brands portfolio as we increase penetration."
Albertsons noted the following positive takeaways from a quarter that saw the company investing in continued ecommerce growth:
- Accelerated growth of online business
- Enhanced digital and online offerings
- Growth in Own Brands penetration
- Converted IT Systems of 82 Albertsons bannered stores
- Acquired Plated, a premier provider of meal kits
- Opened 17 new and acquired stores and remodeled 80 stores year to date
- Supported local communities in hurricane relief efforts
While Albertsons seemed optimistic in its expansive agenda, fiscal highlights from the quarter were mixed. The company cited an adjusted EBITDA of $485.2 million or 3.5% of sales—compared with $573.7 million or 4.1% of sales from the second quarter of 2016. Net sales decreased 0.2% to $13,831.7 million from $13,856.1 million last year.
Same store sales for Q2 2017 declined 1.8% compared to an increase of 0.1% for the second quarter of fiscal 2016. The company noted, however, that its 2017 results represent a sequential improvement from a decline of 2.1% in the first quarter of fiscal 2017 and a decline of 3.3% in the fourth quarter of fiscal 2016. During the second quarter of fiscal 2017, Albertsons noted, identical store sales were impacted by a lack of food price inflation and making selective investments in price to increase sales.
Gross profit margin decreased to 27.0% for the second quarter of fiscal 2017 compared to 27.2% for the second quarter of fiscal 2016. Excluding the impact of fuel, gross profit margin decreased 10 basis points—a decrease the company attributed to selective investments in price and an increase in shrink expense as a percentage of sales.
For more information, see highlights from Albertsons' SEC filing here.