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Albertsons revised its fiscal 2026 sales and earnings outlook on Thursday following weaker grocery demand and a more cautious consumer stance that impacted first‑quarter results.
The company now projects identical sales to fall 0.5% to 1.5% for the full fiscal year, versus its earlier expectation of flat sales to 1% growth.
Adjusted earnings are now forecast at $1.75 to $1.85 per share, down from the prior $2.22 to $2.32 range. Adjusted EBITDA is projected at $3.55 billion to $3.625 billion, compared with the earlier $3.85 billion to $3.925 billion.
Identical sales slipped 0.8% in the quarter ended June 20, while net sales and other revenue rose 0.2% to $24.94 billion, boosted by higher fuel sales. Digital sales grew 13%, but the core grocery segment faced increasing pressure from softer industry trends.
Grocery retailers intensify price competition as shoppers seek checkout relief
The company projects identical sales to decline between 0.5% and 1.5% for the full fiscal year. (Ethan Miller/Getty Images)
“Digital and pharmacy businesses continued to deliver strong growth, while core grocery faced mounting pressure from softer industry trends and a more cautious consumer,” said CEO Susan Morris in the earnings release.
Albertsons announced it is accelerating investments to strengthen its customer value proposition and improve the shopping experience ahead of expected productivity gains.
“We are choosing to accelerate investments in our customer value proposition and the customer experience ahead of expected productivity benefits because we believe these actions will improve our growth trajectory, strengthen our competitive position, and create long‑term shareholder value,” Morris said.
Ticker Security Last Change Change % ACI ALBERTSONS COS INC 11.44 -3.16 -21.64%
As part of that effort, Albertsons announced an operating realignment called ACI Edge, consolidating its 11 divisions into four regions and placing center‑store merchandising under a single enterprise team.
Albertsons said the restructuring is intended to accelerate decision‑making, improve local execution, and centralize category management, supplier relationships, and merchandising strategy.
First‑quarter net income fell to $84.7 million, or 17 cents per share, from $236.4 million, or 41 cents per share, a year earlier. Adjusted earnings declined to 42 cents per share from 55 cents.
Albertsons also announced an operating realignment called ACI Edge. (Bridget Bennett/Bloomberg via Getty Images)
Gross margin narrowed to 26.6% from 27.1%, with higher delivery and handling expenses from digital growth and increased fuel costs contributing to the pressure.
Separately, Albertsons said Chief Financial Officer Sharon McCollam plans to retire later this year. She will remain in her role until a successor is named and will then serve in an advisory capacity through Feb. 27, 2027, to assist with the transition.
Albertsons operated 2,240 stores across 35 states and the District of Columbia as of June 20.