The Boise-based supermarket chain revised its financial guidance for fiscal 2026 on Thursday, anticipating a modest decline in sales compared to its previous estimate of flat or slightly positive growth. This revision followed a notable drop in first-quarter earnings, prompting a more than 20% decline in Albertsons’ stock value.
Albertsons now forecasts identical store sales to decrease by 0.5% to 1.5% for fiscal 2026, a significant shift from its earlier guidance of flat to 1% growth. Adjustments to earnings per share projection have been made, lowering the range to $1.75 to $1.85 from a previous $2.22 to $2.32. The company has also reduced its adjusted EBITDA guidance to $3.55 billion to $3.625 billion, down from the earlier $3.85 billion to $3.925 billion range.
Financial results for the 16-week period ending June 20, 2026, showed a net income of $84.7 million, or $0.17 per share, compared to $236.4 million, or $0.41 per share, in the same quarter the previous year. Identical sales recorded a 0.8% decline, with adjusted net income reaching $210.3 million, or $0.42 per share, down from $318.9 million, or $0.55 per share, year-over-year.
“In the first quarter, our digital and pharmacy operations demonstrated robust growth, whereas the core grocery segment experienced challenges due to weaker industry trends and increased consumer caution,” stated Chief Executive Officer Susan Morris in an official statement.
During a recent post-earnings conference call, Morris highlighted Walmart and Amazon as key competitors affecting customer retention, with shoppers increasingly favoring platforms that offer competitive pricing. This trend has impacted rivals like Kroger and Sprouts Farmers Market, resulting in their stocks declining on Thursday as well.
In response to market challenges, Albertsons has announced a strategic shift to enhance customer experience and streamline operations. The company plans to consolidate its 11 operating divisions into four regional units, centralizing functions such as pricing, promotions, and supplier relations. Additionally, Albertsons is intensifying investments in pricing strategies and customer service improvements to counter competitive pressures.
“We are prioritizing customer value and experience enhancements before realizing productivity benefits, believing these steps will strengthen our long-term growth prospects,” Morris stated.
Recent developments include Sharon McCollam stepping down as Chief Financial Officer, with her departure scheduled before year-end. During the first quarter, the company bought back 13.4 million shares for $226.5 million and raised its quarterly dividend by 13% to $0.17 per share. Capital expenditures for the quarter amounted to $522.1 million, highlighting new store openings and significant remodels.
