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Albertsons cut its fiscal 2026 sales and earnings on Thursday after weaker grocery demand and a more cautious consumer weighed on its first-quarter performance.
The grocery chain now expects comparable sales to fall between 0.5% and 1.5% for the full fiscal year, compared to its previous forecast of flat to 1% sales.
Albertsons also lowered its adjusted earnings forecast to between $1.75 and $1.85 per share, down from its previous range of $2.22 to $2.32. Adjusted EBITDA is now expected to range from $3.55 billion to $3.625 billion, compared to its previous forecast of $3.85 billion to $3.925 billion.
Comparable sales fell 0.8% during the quarter ended June 20, while net sales and other income increased 0.2% to $24.94 billion, helped by higher fuel sales. Digital sales rose 13%, although the company said its core grocery business was facing increasing pressure from softer trends in the industry.
GROCERY MAJOR DEFEAT WALMART, ALDI IN PRICE WAR AS SHOPPERS RUN TO CHECKOUT
The grocery chain now expects comparable sales to fall between 0.5% and 1.5% for the full fiscal year. (Ethan Miller/Getty Images)
“During the first quarter, our digital and pharmacy businesses continued to deliver strong growth, while grocery faced increasing pressure from softer industry trends and more cautious consumers,” CEO Susan Morris said in the company's earnings release.
Albertsons said it is accelerating investments aimed at strengthening the customer value proposition and improving the shopping experience before expected productivity gains are realized.
“We are choosing to accelerate investments in our customer value proposition and customer experience ahead of expected productivity gains because we believe these actions will advance our growth trajectory, strengthen our competitive position, and create long-term shareholder value,” Morris said.
| A ticker | Security | Finally | Change | Change % |
|---|---|---|---|---|
| ACI | Company ALBERTSONS COS INC | 11.44 | -3.16 |
-21.64% |
As part of that effort, Albertsons announced a functional redesign called ACI Edge. The company consolidated its 11 divisions into four regions and placed retail sales under one business group.
Albertsons said the reorganization is aimed at speeding up decision-making, improving local operations and bringing divisional management, supplier relationships and sales strategies under a central structure.
First-quarter revenue fell to $84.7 million, or 17 cents per share, from $236.4 million, or 41 cents per share, a year earlier. Adjusted earnings fell to 42 cents per share from 55 cents.
Albertsons also announced a functional redesign called ACI Edge. (Bridget Bennett/Bloomberg via Getty Images)
Gross margin decreased to 26.6% from 27.1%. Albertsons says other pressures have come from higher delivery and handling costs associated with digital growth, as well as higher fuel costs.
Separately, Albertsons said Chief Financial Officer Sharon McCollam plans to retire later this year. McCollam will remain in his current role until a replacement is named and will serve as an adviser in Feb. 27, 2027, to help with this change.
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Albertsons operated 2,240 stores in all 35 states and the District of Columbia as of June 20.
