Core Insights - Albertsons Companies reported first quarter 2025 results with same-store sales growth of 2.8%, adjusted EBITDA of $1.11 billion, and adjusted EPS of $0.55, indicating lower year-over-year profitability [1] - Management raised FY2025 same-store sales growth outlook to 2%–2.75%, driven by strong pharmacy and digital performance, while maintaining adjusted EBITDA and adjusted EPS guidance [1][10] Digital Transformation - E-commerce revenue grew 25% year-over-year, accounting for 9% of total grocery sales, although still below peers [3] - Investments in digital capabilities and mobile apps are enhancing customer engagement across omni-channel touchpoints [3][4] Pharmacy Performance - Pharmacy sales surged 20%, with GLP-1 medications contributing significantly to growth, and increased store traffic from pharmacy customers driving long-term value [5][6] - Integration of pharmacy and grocery is expected to enhance customer loyalty and increase visit frequency [6] Margin Dynamics - Gross margin declined by 85 basis points due to investments in customer value and a shift towards pharmacy and digital sales, partially offset by productivity gains [7] - National buying initiatives and automation are anticipated to provide gross margin support in the latter half of FY2025 [7][9] Future Outlook - Management expects adjusted EBITDA for FY2025 to be between $3.8 billion and $3.9 billion, with capital expenditures projected at $1.7 billion to $1.9 billion [10] - For FY2026, the company targets long-term identical sales growth of 2% or more and adjusted EBITDA growth exceeding sales [10]