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A week after postponing its planned IPO, Albertsons Cos. delivered strong sales figures for its fiscal second quarter ended Sept. 12, driven primarily by its newly acquired Safeway stores.
The Boise-based supermarket operator posted net sales for the quarter of $13.4 billion, compared with $5.6 billion in the year-ago period, and same-store sales increased an estimated 4.4 percent, the company said.
Additionally, earnings hit $570 million, up from $217 million in the year-ago, while the company reported a net loss of $170 million.
"The financial picture Albertsons provided for the second quarter may shore up confidence in the company’s ability to increase sales by investing in strong performing stores and divesting underperformers," according to an article in Forbes.
As PG previously reported, Albertsons' IPO -- which had been slated for completion by Oct. 15 and set to generate close to $2 billion -- was pulled indefinitely citing "unstable market conditions." Many analysts believe the company postponed its going public in part due to Walmart's recent financial report, which cited weaker-than-expected sales performance.
Albertsons completed its acquisition of Safeway in a $9.4 billion deal in early 2015, and is currently executing an $800 million synergy plan from the buyout, which the company expects to achieve by the end of fiscal 2018.