Albertsons Companies reported increased sales and strong digital growth in the third quarter (Q3) of fiscal 2025 while net income declined from a year earlier.
The US retailer said net income for the quarter ended 29 November 2025 fell to $293.3m, or $0.55 per share, from $400.6m, or $0.69 per share, in the same period of fiscal 2024.
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Adjusted net income reached $390.3m, or $0.72 per share, compared with $420.3m, or $0.71 per share, a year earlier.
Operating income for the period was $489.7m, down from $518.5m in the same period last year.
Net sales and other revenue rose 1.9% year on year to $19.12bn, driven mainly by higher pharmacy sales and growth in identical sales.
Digital sales also supported revenue growth, although this was partly offset by store closures since the third quarter of fiscal 2024 and weaker fuel sales.
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By GlobalDataIdentical sales increased 2.4% during the quarter while digital sales advanced 21%. Loyalty membership grew by 12% to 49.8 million.
Adjusted EBITDA totalled $1.03bn, equivalent to 5.4% of net sales and other revenue.
The company said a temporary government shutdown and delayed SNAP funding reduced identical sales by an estimated ten to 20 basis points.
Gross margin declined to 27.4% from 27.9% a year earlier, reflecting higher delivery and handling costs associated with digital expansion and a larger contribution from lower-margin pharmacy sales.
Selling and administrative expenses fell to 24.9% of net sales and other revenue, compared with 25.1% in the prior-year quarter, largely due to employee cost leverage and lower merger-related expenses.
Net interest expense increased to $116m from $109m, while income tax expense rose to $84.4m, reflecting the absence of discrete state income tax benefits recognised in the previous year.
Albertsons also narrowed its fiscal 2025 outlook, forecasting identical sales growth of between 2.2% and 2.5%.
The company expects adjusted EBITDA of $3.82bn to $3.87bn, including around $65m linked to its 53rd week, and adjusted net income per Class A common share of $2.08 to $2.16.
The retailer continues to project an effective income tax rate of 23% to 24% and capital expenditure of $1.8bn to $1.9bn for the financial year.
Albertsons CEO 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 personalised experiences.”
