Albertsons Companies Inc (NYSE: ACI) announced its fourth-quarter financial results, revealing better-than-expected performance. However, the company's stock is trading lower in premarket on Monday despite the positive earnings report.

The retail chain observed a significant 24% increase in digital sales in Q4 compared to the previous year, showcasing a strong growth in this segment. Additionally, Albertsons saw a boost in loyalty members, reaching 39.8 million by the end of the quarter, which reflects a 16% rise from the same period in the previous year.

CEO Vivek Sankaran expressed optimism about the upcoming fiscal year, highlighting the company's commitment to investing in its Customers for Life strategy and enhancing digital and omnichannel capabilities to support this approach. Despite the positive growth in key areas, Albertsons anticipates ongoing challenges in the future due to various factors, including investments in employee wages and benefits, changing food costs, reduced government assistance for customers, declining COVID-related revenue, and an increasing mix of pharmacy and digital businesses.

In terms of financial performance, Albertsons reported earnings of $251 million for the quarter compared to $311 million in the prior year, reflecting a decline in per-share earnings from 54 cents to 43 cents. The adjusted earnings per share stood at 54 cents, while revenue remained relatively stable year-over-year at $18.34 billion. Despite exceeding revenue expectations, the company foresees ongoing difficulties that have contributed to a decrease in its stock value by more than 10% from its year-to-date high.