Just a week after Albertsons announced that it would be delaying its planned initial public offering, the retailer reported a promising uptick in same-store sales for its preliminary Q2 2015 results on Tuesday evening.
The Wall Street Journal reported that Albertsons’ same-store sales increased approximately 4.4 percent on an adjusted basis for its second quarter, ended September 12. This was driven by 9.7 percent growth at stores it acquired from Supervalu and 4.8 percent growth from stores it bought from Safeway, according to Forbes.
Net sales, on the other hand, were reported to be about $13.4 billion, compared to $5.6 billion during the same time last year due to the company’s merger with Safeway.
Last Thursday, Albertsons made headlines when the company said it would postpone its IPO citing unfavorable market conditions. A later report that day indicated that the company still intends to initiate its offering before the Thanksgiving holiday at approximately $20 per share under the New York Stock Exchange as the ticker symbol ABS.
Earnings from the IPO would be used to pay down debt, which was reported at $12 billion.
As of June 20, 2015, the company operates 2,205 stores across 33 states under 18 banners. Albertsons operates 30 distribution centers and 21 manufacturing facilities.
Will this encouraging outlook be enough to increase investor confidence as the company re-initiates its IPO later this year? Stay tuned to DeliMarket News as we continue our coverage.