The situation: Strong performances in ecommerce and pharmacy helped Albertsons beat top- and bottom-line expectations despite continued pressure across the grocery industry.
Albertsons is also winning over more shoppers by making its loyalty program more rewarding and easier to use. Membership rose 14% in the quarter thanks to more deals, simpler ways to earn points, and bigger cash-back perks.
The numbers:
- Revenues were $24.88 billion in the fiscal first quarter ended June 14, up 2.5% YoY, and ahead of the $24.71 billion that analysts expected.
- Same-store sales grew 2.8%, well ahead of the 2.1% analysts had forecast.
- Digital sales jumped 25%.
- Earnings per share were 55 cents, down 16.7% YoY, but slightly ahead of the 54 cents forecast.
The grocer raised its full-year 2025 comparable sales outlook to a range of 2% to 2.75% growth, up from its previous guidance of 1.5% to 2.5%. However, it held firm on its profit forecast, as much of the fiscal Q1 upside came from lower-margin pharmacy sales and higher-cost digital orders.
Our take: Consumers remain laser-focused on value, especially at the grocery store. While food inflation has eased since the sharp spikes of 2021 to 2023, the impact of those increases—plus the threat of new tariff-driven price hikes—has shoppers watching their grocery bills closely.
Albertsons’ 14% growth in loyalty membership last quarter signals just how eager consumers are for savings. With more people eating at home to stretch their dollars, Albertsons’ value-focused approach helped it outperform expectations and could drive strength in coming quarters.