Albertsons Companies delivered solid fourth quarter and fiscal year results, while seeing increased demand in March and April as the coronavirus pandemic spread.
Sales and other revenue were $15.4 billion during the fourth quarter ended February 29, 2020 compared to $14 billion during fourth quarter of fiscal 2018. The increase in sales was primarily driven by the extra week in the fourth quarter of fiscal 2019, which contributed approximately $1.1 billion, and the company’s 1.8% increase in identical sales. Net income was $67.8 million during the fourth quarter of fiscal 2019 compared to net income of $135.6 million during the fourth quarter of fiscal 2018.
For the full fiscal year, sales and other revenue was $62.5 billion compared to $60.5 billion during fiscal 2018. The increase in sales was primarily driven by the company’s 2.1% increase in identical sales and the extra week in fiscal 2019, partially offset by a reduction in sales related to store closures. Net income was $466.4 million during fiscal 2019 compared to net income of $131.1 million during fiscal 2018.
Since the beginning of fiscal 2020, the company said it has experienced significant increases in customer traffic, product demand and overall basket size in stores and online as customers adjust to the circumstances around COVID-19. As a result, identical sales increased 47% during the first four weeks of fiscal 2020 (ending March 28, 2020), and increased 21% during the second four weeks of fiscal 2020 (ending April 25, 2020). Quarter to date identical sales for the first eight weeks of fiscal 2020 increased 34% compared to the comparable period during fiscal 2019.
“We are pleased that our momentum continued as we closed fiscal 2019, with improved performance on the top and bottom line. However, the world has changed since then, and we are heavily focused on supporting our associates, our customers and the communities we serve as we respond to the increased demand resulting from the COVID-19 pandemic,” said Vivek Sankaran, president and CEO, Albertsons. “We are so proud of the efforts of our store, distribution and manufacturing teams, whose work has been heroic in the face of this crisis, and we thank them for everything they continue to do. Both our stores and our online business are seeing significantly increased demand as consumers shift to more food-at-home.”