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Digital candles increased 276% in the quarter, while sales in the same store rose 26.5%.
Matthew Staver / Bloomberg News
Albertsons Cos. He released an optimistic first-quarter fiscal report on Monday, but his shares were falling because investors may have been waiting for more from the supermarket operator, as many food retailers have received a boost during the Covid-19 pandemic.
Albertsons (ticker: ACI) said it earned $ 586.2 million, or $ 1 a share, up from 8 cents a share a year earlier. On an adjusted basis, the company earned $ 1.35 per share in revenue of $ 22.75 billion. Analysts were looking for EPS of $ 1.32 on revenue of $ 22.71 billion.
Digital candles increased 276% in the quarter, while sales in the same store rose 26.5%. Albertsons said demand for products and the total size of the basket (the number of items people buy on each trip) have increased since the start of fiscal year 2020, both in stores and online. Other supermarkets have also seen large sales increases due to the pandemic.
That said, the company set aside $ 615 million in pandemic-related costs, including an additional $ 275 million to pay for front-line workers, and also saw some store closings and lower fuel sales.
Albertsons declined to provide guidance, citing uncertainty about the coronavirus crisis. “The current Covid-19 pandemic has dramatically changed the landscape of household food consumption, and the company continues to prioritize the health and safety of its associates, customers and communities,” he said.
The stock initially rose after the results, but then fell 4.9% to $ 15.32. The S&P 500 was up 0.5%. Rival Kroger (KR) also declined after its earnings report last month.
While the company had a better-than-expected bottom line, the 3-cent pace may not have been as strong as some investors expected, as supermarkets have benefited from consumers who stock their pantries and eat more at home. Also, earnings were a little slight, another possible concern. Analyst expectations were also high in the report.
Additionally, some investors may have been waiting for guidance throughout the year to ensure the strength can continue.
Write to Teresa Rivas at [email protected]
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