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Bloomberg
Albertsons Cos. reported a quarterly profit that topped Wall Street’s estimates, underscoring the steady demand that makes the grocer an attractive takeover target for Kroger Co.
Earnings excluding some items rise to 72 cents a share in the fiscal second quarter, Albertsons said in a statement. That surpassed the 64-cent average of analyst estimates compiled by Bloomberg. Sales also beat analyst projections.
Grocers are cashing in as soaring US inflation forces shoppers to spend more on essentials. Albertsons, the second-biggest US operator of traditional supermarkets, agreed last week to be acquired by larger rival Kroger in a deal valued at $24.6 billion. While Kroger says the combination will yield cost savings for the companies and lower prices for consumers, the deal is expected to come under tough scrutiny from US antitrust regulators.
The Boise, Idaho-based company cancelled its quarterly earnings call due to the pending transaction with Kroger. The companies expect the deal to close in early 2024.