Albertsons Companies Inc. slashed its full-year sales and earnings guidance on Thursday as persistent consumer price sensitivity weighed on grocery volume, triggering a sharp sell-off that knocked more than 21% off the retailer’s share price.<\/p>\n
The Boise, Idaho-based supermarket operator now expects identical sales to fall between 0.5% and 1.5% for fiscal 2026<\/a>, marking a significant downward revision from its previous projection of flat sales to 1% growth. Full-year adjusted earnings were also lowered to a range of $1.75 to $1.85 per share, down from $2.22 to $2.32, while adjusted EBITDA guidance was trimmed to between $3.55 billion and $3.625 billion.<\/p>\n The gloomier outlook reflects deteriorating momentum in traditional grocery aisles during the first quarter ended June 20. Identical sales declined 0.8% for the period, even as overall net sales and other revenue edged up 0.2% to $24.94 billion, bolstered primarily by higher retail fuel sales.<\/p>\n Bottom-line performance eroded significantly during the quarter. net income<\/a> fell to $84.7 million, or 17 cents per share, compared with $236.4 million, or 41 cents per share, in the prior-year quarter. Adjusted net income per share dropped to 42 cents from 55 cents.<\/p>\n Profitability was further pinched by narrowing margins. Gross margin contracted to 26.6% from 27.1% a year earlier, burdened by rising fuel costs and higher handling and logistics expenses linked to digital sales. Although digital revenue expanded 13%, full-service grocery operators face ongoing structural margin pressure from digital order picking and last-mile fulfillment, which typically carry higher operational overhead than physical store transactions.<\/p>\n The financial pressure reflects broader shifts in household behavior across the retail sector. Following years of elevated inflation tracked by agencies like the U.S. Bureau of Labor Statistics<\/a>, budget-conscious consumers are increasingly trading down to private-label alternatives, seeking out promotional discounts, or shifting purchases toward big-box retailers and discount grocers.<\/p>\n Chief Executive Officer Susan Morris noted that while digital and pharmacy offerings generated solid momentum, core grocery items faced broader industry headwinds from softer unit volumes and cautious spending patterns. In response, the company is ramping up investments in customer value and loyalty programs ahead of anticipated efficiency gains.<\/p>\n To streamline store execution and improve bargaining power with suppliers, Albertsons unveiled a corporate overhaul called ACI Edge. The initiative consolidates its 11 operational divisions into four regional clusters and unifies center-store merchandising under a single national team to optimize procurement, category management, and local pricing strategies.<\/p>\n Separately, Chief Financial Officer Sharon McCollam announced her decision to retire later this year. McCollam will remain in her current executive position until a successor is appointed, after which she will transition into an advisory role through Feb. 27, 2027.<\/p>\n As of June 20, Albertsons operated 2,240 stores across 35 states and the District of Columbia.<\/p>\n