Albertsons shares fall after grocer cuts fiscal 2026 forecast
Albertsons lowered its annual profit and sales outlook, saying cautious shoppers and weaker grocery demand are pressuring its core business.
By Sofia Marchetti · World Affairs Correspondent
2 min read
Albertsons shares dropped Thursday after the grocery chain reduced its fiscal 2026 forecast, signaling that weaker food-shopping demand is weighing on sales and earnings. The cut matters for investors because it points to pressure in the company’s core grocery business even as other segments grow.
CNBC reported that the stock fell nearly 15% after Albertsons issued the lower outlook. The company said softer demand and more careful consumer spending are expected to hurt near-term results.
Albertsons said it now expects full-year net income of $1.75 to $1.85 per share. Its prior forecast had called for $2.22 to $2.32 per share.
The grocer also reduced its adjusted EBITDA guidance to $3.55 billion to $3.625 billion. Albertsons previously expected adjusted EBITDA of $3.85 billion to $3.925 billion.
Core grocery sales weaken
Albertsons said identical sales, a measure similar to comparable sales, are now expected to fall 0.5% to 1.5% for the full fiscal year. The company had earlier projected identical sales ranging from flat to up 1%.
For the first fiscal quarter, Albertsons reported a 0.8% decline in identical sales. The company posted net income of $84.7 million, or 17 cents per share, down from $236.4 million, or 41 cents per share, in the same period a year earlier.
CEO Susan Morris said in a company statement that Albertsons’ digital and pharmacy businesses continued to grow strongly during the quarter. She said core grocery faced more pressure from weaker industry unit trends and a more cautious consumer.
The company said it is acting to invest in the customer experience, which it believes can help improve growth over time. Morris told analysts that consumer pressure is weighing on near-term earnings, while the company aims to improve traffic, units, loyalty and the broader direction of the business.
Consumers pull back on food trips
CNBC reported that Albertsons’ forecast cut comes as U.S. consumers have reduced grocery trips. Food inflation and tighter household budgets tied in part to high gas prices appear to be affecting spending, according to CNBC.
The results show how higher living costs are still shaping customer behavior at food retailers. For Albertsons, that pressure has translated into a lower annual outlook and a sharper focus on drawing shoppers back to stores and its digital channels.
This story draws on original reporting from CNBC.