Albertsons Companies, Inc. (NYSE:ACI) reported third-quarter fiscal 2025 results that exceeded earnings expectations, even as revenue narrowly missed estimates, reflecting continued investment in digital capabilities and technology across the grocery chain.
For the quarter ended November 29, the retailer delivered adjusted earnings of $0.72 per share, ahead of the consensus forecast of $0.68. Revenue totaled $19.12 billion, representing a 1.9% year-on-year increase but slightly under the $19.18 billion analysts had anticipated. Identical store sales rose 2.4% compared with a year earlier, supported largely by strong growth in the pharmacy segment.
Albertsons shares slipped about 0.5% following the earnings release.
Commenting on the performance, Chief Executive Officer Susan Morris said: “In the third quarter, we delivered solid results and continued to advance our strategic priorities. Our investments in technology and AI are fundamentally reshaping how we operate and serve our customers; driving smarter decisions, greater efficiency, and more personalized experiences.”
Digital sales jumped 21% during the quarter, while the company’s loyalty program expanded by 12% to 49.8 million members. Albertsons noted that a temporary government shutdown and delays in SNAP funding weighed on identical sales by roughly 10 to 20 basis points over the period.
Profitability was slightly pressured, with the gross margin rate declining to 27.4% from 27.9% a year earlier. The decrease was mainly attributed to higher delivery and handling costs linked to the rapid growth in digital sales, as well as a greater contribution from lower-margin pharmacy revenues.
Looking ahead, Albertsons refined its outlook for fiscal 2025, narrowing its identical sales growth forecast to a range of 2.2% to 2.5%, compared with previous guidance of 2.2% to 2.75%. The revision partly reflects the impact of Medicare’s Drug Price Negotiation Program. The company now expects adjusted earnings per share of between $2.08 and $2.16, broadly in line with the analyst consensus of $2.14.