Albertsons Sales Rise Nearly 9% on Higher Prices
Albertsons posted a quarterly profit of $343 million amid higher grocery prices across the U.S.
Photo:
Ash Ponders/Bloomberg News
Albertsons
ACI 0.84%
Cos. posted an 8.5% rise in revenue in its recently completed quarter as higher prices boosted its same-store sales.
The results come just days after rival
Kroger Co.
KR -2.43%
said it planned to buy Albertsons in a deal valuing the Boise, Idaho, supermarket chain at $24.6 billion.
Albertsons, which operates supermarket banners such as Safeway, Shaw’s and Acme, said Tuesday that quarterly sales came in at $17.9 billion, up from $16.5 billion in the same period a year ago. Same-store sales rose 7.4% largely due to its price increases. Wall Street analysts had been expecting $17.7 billion, according to
FactSet.
Grocery prices in the U.S. are up broadly, rising 13% in September, according to the latest data from the U.S. Labor Department.
The company posted a profit of $343 million, or 59 cents a share, compared with $295.2 million, or 52 cents a share, in the same quarter last year.
Stripping out one-time items, adjusted earnings were 72 cents a share, topping Wall Street projections of 65 cents a share.
The proposed merger between Kroger and Albertsons would tie up the two largest supermarket operators in the U.S. and is expected to face significant scrutiny from federal antitrust enforcers, which have already challenged some mergers under the Biden administration.
The Wall Street Journal reported last week that the companies are expected to sell overlapping stores as part of their bid to win regulatory approval.
Shares edged 1% higher in premarket trading to $26.70.
Write to Dean Seal at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Albertsons posted a quarterly profit of $343 million amid higher grocery prices across the U.S.
Photo:
Ash Ponders/Bloomberg News
Albertsons
ACI 0.84%
Cos. posted an 8.5% rise in revenue in its recently completed quarter as higher prices boosted its same-store sales.
The results come just days after rival
Kroger Co.
KR -2.43%
said it planned to buy Albertsons in a deal valuing the Boise, Idaho, supermarket chain at $24.6 billion.
Albertsons, which operates supermarket banners such as Safeway, Shaw’s and Acme, said Tuesday that quarterly sales came in at $17.9 billion, up from $16.5 billion in the same period a year ago. Same-store sales rose 7.4% largely due to its price increases. Wall Street analysts had been expecting $17.7 billion, according to
FactSet.
Grocery prices in the U.S. are up broadly, rising 13% in September, according to the latest data from the U.S. Labor Department.
The company posted a profit of $343 million, or 59 cents a share, compared with $295.2 million, or 52 cents a share, in the same quarter last year.
Stripping out one-time items, adjusted earnings were 72 cents a share, topping Wall Street projections of 65 cents a share.
The proposed merger between Kroger and Albertsons would tie up the two largest supermarket operators in the U.S. and is expected to face significant scrutiny from federal antitrust enforcers, which have already challenged some mergers under the Biden administration.
The Wall Street Journal reported last week that the companies are expected to sell overlapping stores as part of their bid to win regulatory approval.
Shares edged 1% higher in premarket trading to $26.70.
Write to Dean Seal at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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