Albertsons posts first quarter results for 2025 with ‘solid’ performance

Three areas showed increases in a recent report detailing the results of Albertsons Companies, Inc., fiscal first quarter of 2025, which ended on June 14.

In its report, Albertsons stated that identical sales increased by 2.8%, digital sales increased by 25% and loyalty members increased 14% to 47.3 million.

The grocery chain, which owns Albertsons, operates stores in 35 states under different brands such as Safeway, Vons, Jewel-Osco, Shaw’s and many others. It reported a net income of $236 million, or 41 cents per share, and adjusted net income of $319 million, or 55 cents per share.

“In the first quarter, we delivered solid operating and financial performance, while investing in our core operations and improving our customer value proposition,” said Susan Morris, CEO. “Ongoing investments in our strategic priorities drove increased engagement across our digital platforms, evidenced by strong growth in our digital sales, pharmacy operations and membership in our loyalty program. To fuel these investments, we leveraged our productivity engine to drive efficiencies throughout our operations.”

Additionally, the company reported that gross margin rate decreased to 27.1% for Q1 compared to 27.8% of Q1 of 2024, a decrease of 85 basis points. It stated that the decrease was due primarily by “incremental investments in our customer value proposition, strong growth in pharmacy sales, which carries an overall lower gross margin rate, and increases in delivery and handling costs related to the continued growth in our digital sales, partially offset by the benefits from our productivity initiatives, which included reductions in shrink expense.”

It also reported that selling and administrative expenses decreased from 25.9% in Q1 of 2024 to 25.4% in Q1 of 2025, a decrease of 63 basis points.

For the overall 2025 fiscal year, Albertsons expects its identical sales growth to be in the range of 2% to 2.75% and an adjusted EBITDA in the range of $3.8 billion to $3.9 billion.

“As we look forward to the balance of fiscal 2025, we do so with continued confidence in our Customers for Life strategy,” Morris said. “We want to thank our teams for delivering these results and for their ongoing commitment to serving our customers and supporting the communities in which we operate.”