Albertsons posted fiscal second-quarter earnings which beat Wall Street estimates as the food and drug retailer increased its full-year earnings outlook.
For the three months ended 11 September, net income grew 3.8% to $295.2m (£215m) from $284.5m in the same period last year. Sales rose 4.7% to $16.5bn from $15.8bn a year earlier. Adjusted EBITDA rose 1.8% to $965.4m from $948.4m.
On a per-share basis, earnings for the quarter were 52 cents compared to 49 cents in the same period last year.
Analysts expected EPS of 45 cents
Analysts had been expecting adjusted EPS of 45 cents on sales of $15.864bn, according to data from FactSet.
"The favourable consumer backdrop together with our focus on in-store excellence, accelerating our digital and omni-channel capabilities, increasing productivity and strengthening our talent and culture, are driving increased identical sales and improved performance," Albertsons chief executive Vivek Sankaran said in a press release.
Same-store sales – a key retail industry metric and called "identical" sales by Albertsons – grew by 1.5% in the quarter.
Sees FY EPS of $2.50 to $2.60
Looking ahead, the company increased its full-year earnings per share guidance to $2.50 to $2.60, up from its prior guidance of $2.20 to $2.30.
Albertsons also said it sees full-year identical sales falling by 2.5% to 3.5% against its previous guidance of a 5% to 6% drop.
The Boise, Idaho-based retailer operates 2,278 food and drug stores, 1,725 pharmacies and 401 associated fuel centres. It operates under names such as Albertsons, Acme, Jewel-Osco, Safeway, Vons and Star Market. The company listed on the New York Stock Exchange in June 2020.
Shares are higher Monday in pre-market trading.