Albertsons Companies has reported lower profit for the first fiscal quarter despite an improvement in its top line.

For the quarter ended June 14, net sales and other revenue increased 2.5 per cent to $24.880 billion, with comparable sales up 2.8 per cent.

Meanwhile, gross margin rate dropped from 27.8 per cent a year ago to 27.1 per cent, and net income fell from $240.7 million to $236.4 million.

“We delivered solid operating and financial performance, while investing in our core operations and improving our customer value proposition,” said CEO Susan Morris. 

“Ongoing investments in our strategic priorities drove increased engagement across our digital platforms, evidenced by strong growth in our digital sales, pharmacy operations, and membership in our loyalty program.”

The company has raised its outlook for the full year, expecting identical sales to grow 2-2.75 per cent, compared to the previous 1.5-2.5 per cent.

As of June 14, Albertsons had 2264 retail stores with 1725 in-store pharmacies and 408 associated fuel centers across 35 states and the District of Columbia.

Last year, the $24.6 billion proposed merger between Albertsons and Kroger fell through after being blocked by federal and state judges over competition concerns.