(Reuters) -Albertsons raised its annual profit and sales forecast on Tuesday, supported by steady demand for pharmacy products and a growing digital presence.
Shares were up 6% in premarket trading after the company increased its share buyback plan by $750 million.
Growing demand for same-day grocery delivery and closures of traditional drugstores have aided grocers, including Albertsons.
“Strong performance against our strategic priorities fueled deeper engagement across our digital platforms, resulting in outsized growth in digital sales, pharmacy, and loyalty membership,” CEO Susan Morris said in a statement.
Retailers have benefited as U.S. consumers, who are grappling with high inflation, switch to lower‑priced groceries instead of eating out.
Albertsons expects annual adjusted earnings per share of $2.06 to $2.19, versus prior guidance of $2.03 to $2.16.
It now sees identical sales growth between 2.2% and 2.75%, up from 2.0% to 2.75%, the company said.
The Boise, Idaho-headquartered company reported second‑quarter sales of $18.92 billion, narrowly beating market expectations of $18.9 billion, according to LSEG.
Adjusted profit was $0.44 per share, above analysts’ expectations of $0.40.
(Reporting by Prerna Bedi in Bengaluru; Editing by Tasim Zahid)
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