- Publix reported stellar sales results for 2Q22, with comparable-store sales up 8% despite a modest decline in traffic per Placer.ai data. Compared to 2019, Publix’s share of visits continues to increase in the highly competitive Florida market as shown below.
- Trailing-twelve-month (TTM) sales per square foot of $830 increased $18 QoQ and is likely to be up +5%-6% over the next twelve months.
- TTM EBITDA and free cash flow were $5.1B and $4.1M, respectively, representing an 81% conversion rate. This compares to $4.8B and $3.5B in the respective periods a year ago. Over the next twelve months, both metrics are highly likely to be up mid-single-digits or better.
- Profitability was lower with gross margins down 130 bps to 26.7% as Publix isn’t passing through all of its cost inflation. COGS was up 11% compared to sales growth of +9%.
- 28 units were remodeled during the quarter and five new locations were added, bringing the chain to almost 1,300 locations at the end of the quarter.
