By Senad Karaahmetovic
Albertsons (NYSE:ACI) reported stronger-than-expected numbers for the fourth quarter. Earnings per share (EPS) came in at $0.79 to beat the average analyst estimate of $0.68.
Revenue was reported at $18.27 billion, modestly ahead of the consensus of $18.2B. Same-store sales rose 5.6% year-over-year while digital sales jumped 16%.
Gross margin came in at 27.8%, contracting by 90 basis points compared to the year-ago period.
"We are pleased with our fourth quarter financial results and the suite of capabilities we continue to build in our business," said Vivek Sankaran, CEO.
He added that the company remains “well-positioned to drive top-line growth” going forward.
“However, we also believe that the economic backdrop is uncertain and is likely to be more challenging later in the year. We have prepared our business for a more difficult consumer environment, and are expecting significant labor investments and inflationary cost increases. Additionally, we expect further declines in COVID-19 vaccination and at-home test kit revenue. These headwinds are expected to be partially offset by the ongoing growth in our core business and the benefits from the next phase of our productivity initiatives," Sankaran added.
Vital Knowledge analysts believe the ACI report should be seen as a “net negative” given that “the modest comp beat is offset by weaker margins and cautious qualitative commentary.”