Digital sales increased by 33 percent in the fiscal third quarter of 2022, according to the retailer's latest earnings report.
The company’s net sales and other revenue were up by $1.5 billion during the 12 weeks that ended December 3, when compared to the same period in 2021.
Albertsons also reported:
• Identical sales increased 7.9 percent
• Loyalty membership increased 16 percent to 33 million
• Net income was $376 million, down from $424.5 million in 2021
• Adjusted net income was $505 million, up from $457.2 million in 2021
"Our team continues to deliver strong performance as we execute against our Customers for Life strategy and bring people together around the joys of food and inspire well-being," said CEO Vivek Sankaran in a statement. "Our investments in digital transformation, differentiation in Own Brands and Fresh offerings, and the modernization of our operational capabilities contributed to these results."
"As we look ahead to the balance of the year and into fiscal 2023, we believe that all of these initiatives position us well to continue to drive top-line growth and deepen our customer and community engagement both online and in-store," Sankaran continued.
Despite these wins and an optimistic outlook, the retailer's gross margin decreased by 0.7 percent during this time when compared to the year before. The company attributed this loss to increases in costs associated with the product, shrink, and supply chain, as well as a decline in COVID-related revenue because of fewer vaccines being administered.
“Our ongoing productivity engine is expected to continue to support our investments and partially offset anticipated inflationary cost increases, declines in COVID-19 vaccination and at-home test kit revenue, and macro-consumer headwinds," said Sankaran.
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