US grocer Albertsons cuts annual sales, profit forecasts; shares drop 20%
The grocer said softer demand and heavier value investments will pressure earnings as it shifts to four regional units and centralizes merchandising.
- Shares of Albertsons sank nearly 15% on Thursday after the grocer lowered its fiscal 2026 profit and sales outlook, citing softer consumer demand and a more cautious shopping environment.
- CEO Susan Morris noted "the decline was most pronounced in our lower income customer segment," as shoppers increasingly defect to big pure-price rivals like Walmart and Amazon.
- The company updated full-year adjusted EBITDA guidance to $3.55 billion to $3.625 billion, down from its previous projection of $3.85 billion to $3.925 billion.
- To address performance, Albertsons is implementing its ACI Edge program, restructuring from 11 divisions into four regions while centralizing merchandising functions to boost operational speed.
- Chief Financial Officer Sharon McCollam will retire later this year, with the company conducting a search for her successor amid the operational transformation.
16 Articles
16 Articles
Albertsons warns of softer grocery demand as consumers pull back
Albertsons lowered its fiscal 2026 sales and earnings outlook Thursday after weaker grocery demand and a more cautious consumer weighed on its first-quarter performance.The grocery chain now expects identical sales to decline between 0.5% and 1.5% for the full fiscal year, compared with its previous forecast of flat sales to 1% growth.Albertsons also cut its adjusted earnings forecast to between $1.75 and $1.85 per share, down from its prior ran…
Albertsons cuts outlook as cautious shoppers pressure grocery demand
Albertsons’ reduced fiscal 2026 outlook shows how quickly investments designed to protect customer loyalty can become a near-term earnings burden when grocery demand is already weakening. The company now expects identical sales to fall between 0.5% and 1.5% this fiscal year, replacing an earlier forecast that ranged from flat performance to 1% growth. Albertsons also cut its adjusted earnings outlook to $1.75 to $1.85 per share from $2.22 to $2.…
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