Albertsons Q3 profit declines despite higher sales and digital gains

Albertsons Companies reported accrued income and beardown integer maturation successful the 3rd 4th (Q3) of fiscal 2025 portion nett income declined from a twelvemonth earlier.

The US retailer said nett income for the 4th ended 29 November 2025 fell to $293.3m, oregon $0.55 per share, from $400.6m, oregon $0.69 per share, successful the aforesaid play of fiscal 2024.

Adjusted nett income reached $390.3m, oregon $0.72 per share, compared with $420.3m, oregon $0.71 per share, a twelvemonth earlier.

Operating income for the play was $489.7m, down from $518.5m successful the aforesaid play past year.

Net income and different gross roseate 1.9% twelvemonth connected twelvemonth to $19.12bn, driven chiefly by higher pharmacy income and maturation successful identical sales.

Digital income besides supported gross growth, though this was partially offset by store closures since the 3rd 4th of fiscal 2024 and weaker substance sales.

Identical income accrued 2.4% during the 4th portion integer income precocious 21%. Loyalty rank grew by 12% to 49.8 million.

Adjusted EBITDA totalled $1.03bn, equivalent to 5.4% of nett income and different revenue.

The institution said a impermanent authorities shutdown and delayed SNAP backing reduced identical income by an estimated 10 to 20 ground points.

Gross borderline declined to 27.4% from 27.9% a twelvemonth earlier, reflecting higher transportation and handling costs associated with integer enlargement and a larger publication from lower-margin pharmacy sales.

Selling and administrative expenses fell to 24.9% of nett income and different revenue, compared with 25.1% successful the prior-year quarter, mostly owed to worker outgo leverage and little merger-related expenses.

Net involvement disbursal accrued to $116m from $109m, portion income taxation disbursal roseate to $84.4m, reflecting the lack of discrete authorities income taxation benefits recognised successful the erstwhile year.

Albertsons besides narrowed its fiscal 2025 outlook, forecasting identical income maturation of betwixt 2.2% and 2.5%.

The institution expects adjusted EBITDA of $3.82bn to $3.87bn, including astir $65m linked to its 53rd week, and adjusted nett income per Class A communal stock of $2.08 to $2.16.

The retailer continues to task an effectual income taxation complaint of 23% to 24% and superior expenditure of $1.8bn to $1.9bn for the fiscal year.

Albertsons CEO Susan Morris said: “In the 3rd quarter, we delivered coagulated results and continued to beforehand our strategical priorities. Our investments successful exertion and AI are fundamentally reshaping however we run and service our customers; driving smarter decisions, greater efficiency, and much personalised experiences.”

"Albertsons Q3 nett declines contempt higher income and integer gains" was primitively created and published by Retail Insight Network, a GlobalData owned brand.