In an October 17^th release, Albertson’s Companies (ACI) posted financial results for the second quarter of fiscal 2024 ending September 9^th 2021. As the second largest pure-grocery company, Albertson’s can be regarded as a bellwether for the retail food industry, subject to increased costs of ingredients, labor, packaging and transport in a competitive consumer environment impacted by inflation.

Albertsons operates 21 banners including Albertson’s, Safeway, Von’s, Acme, Jewel-Osco and Shaw’s. Albertson’s Companies posted a 2.9 percent increase in same-store sales with a 19 percent increase in digital sales over the second quarter of FY 2024 compared to 2023.

For the period, net income was $266.9 million on total revenue of $18,291 million.  Comparable figures for the second quarter of fiscal 2023 ending September 10^th 2022 were net income of $342.7 million on total revenue of $17,919 million. Diluted EPS fell from $0.59 for the second quarter of FY 2022 to $0.46 for the most recent quarter. Gross margin declined from 27.9 percent to 27.6 percent denoting escalation in cost of goods sold due to inflation. Operating income decreased from 3.0 percent for the second quarter of FY 2023 to 2.5 percent. During the most recent quarter Albertsons recorded a $14.0 million gain on property disposition and $18.9 million assigned to the ‘other income’ category.

In commenting on results CEO Vivek Sankaran stated, "Our team continued to deliver strong performance during the second quarter." He added "Throughout the quarter, we continued to invest in our digital transformation, our differentiation in Fresh, and the modernization of our capabilities. As we look ahead to the balance of the year, we believe we are well-positioned to further accelerate in each of these areas, as we continue to roll out our Customers for Life strategy. With ongoing productivity to support our investments and to cushion inflationary and consumer headwinds, we will continue to prioritize our investments in deepening our relationships with our customers and communities. Our teams' commitment to serving our customers is driving our performance while furthering our purpose to bring people together around the joys of food and to inspire well-being."

On Friday October 14^th 2022 Kroger announced a bid for Albertson’s offering $34 per share and assuming $4.7 billion in debt in a $25 billion transaction. The acquisition would at the least require divestment of 400 stores among the total of close to 5,000 in areas with an overlap.   Several senators, states Attorneys General and unions representing Albertson’s workers oppose the transaction and have urged the FTC to rule against the merger.

Albertson’s Companies posted assets of $26,322 million, against long-term debt and lease obligations of $15,351 million. The Company had an intraday market capitalization of $12,950 million on October 7^th. ACI trades with a forward P/E of 8.0 and has ranged over a 52-week period from $19.14 to $27.61 with a 50-day moving average of $22.64.