Publix Q1 sales rise 13.5% to $13.2 billion as inflation boosts grocery sales nationwide

Publix’s sales for the first quarter of the year were $13.2 billion, a 13.5% increase from $11.7 billion in the same period of 2021, a Publix press release said.

According to a Supermarket News report, “continued elevated levels of inflation” were responsible for nationwide grocery store sales climbing by more than 9% compared with this time last year.

The Consumer Price Index shows inflation was up by 8.5% during the past 12 months with increases in the indexes for gasoline, shelter and food as the largest contributors.

“March U.S. retail and foodservice sales totaled $665.73 billion (seasonally adjusted), up 0.5% from February and 6.9% from March 21,” the Supermarket News reported, citing , U.S. Census Bureau statistics.

“Retail trade sales — excluding motor vehicles and parts stores, gas and repair stations — grew 0.4% sequentially to $590.37 billion in March and were up 5.5% from a year earlier.”

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At Publix, comparable store sales for the three months ending with March increased 11.7%, its release said.

Hannah Herring, media relations manager for North and Central Florida, Southern Alabama, Georgia and South Carolina, did not respond to questions about the Publix release.

Comparable store sales is a standard metric used in the retail industry and refers to "same-store sales," according to Shivendu Shivendu, an associate professor at the University of South Florida Muma College of Business.

The metric is used to exclude changes in sales due to new store openings during the year by comparing the aggregate sales of new and existing stores, he said.

"This also allows a comparison of the performance of established stores and new stores opened during the year," he said.

Publix has been on a years-long expansion throughout its seven-state operating area with nearly 50 stores opening in recent years. In some Southeast cities, there are as many Publix stores as there are McDonald's and Walmart stores combined.

At Lakeland-based Publix Super Markets Inc. net earnings for the three months ended March 26 were $618 million, compared with $1.5 billion in the same period in 2021, a decrease of 58.7%, Publix said.

Earnings per share for the three months decreased to $0.90 per share, down from $2.16 per share a year ago.

"Excluding the impact of net unrealized losses on equity securities this year and net unrealized gains on equity securities in 2021, net earnings for the first quarter of the year would have been $1.1 billion, compared to $909.8 million in 2021, an increase of 15.5%," Publix said.

Unrealized losses on equity securities refers to the drop in the value of equities, but the equities are still being held or have not been sold, Shivendu said.

"Suppose I buy an equity/stock for $100 dollars on 1st Jan and its price on 31st March is $80, then the realized loss on this equity is $20 if I did not sell on 31st March," he said. "Now, suppose I sold this equity on 31st March, then realized loss is $20. Similarly, suppose on 31st March the price of this stock is $120, but I did not sell, then the unrealized gain is $20.

"For a retailer like Publix, earnings from their operations are an important metric," he said. "Excluding investment losses/gains (realized or unrealized) provides insight about the profitability from retail operations."

Earnings per share would have been $1.54 per share, compared with $1.32 per share in 2021, Publix said.

Publix’s 5-for-1 stock split was effective as of the close of business April 14. As a result of the stock split, the company’s stock price was adjusted from $68.80 per share to $13.76 per share.

On May 1, Publix’s stock price increased from $13.76 per share to $14.91 per share. Publix stock is not publicly traded and is made available for sale only to current Publix associates and members of its board of directors.

Publix said it is the largest employee-owned company in the United States. The grocer has more than 230,000 associates and currently operates 1,297 stores in Florida, Georgia, Alabama, Tennessee, South Carolina, North Carolina and Virginia.

This article originally appeared on The Ledger: Publix sees Q1 sales rise 13% amid nationwide inflation