Key facts
- Albertsons suspended its fiscal year 2026 forecasts.
- The company is conducting a business review to improve performance and cost structure.
- A new financial framework and turnaround plan are expected by the fourth-quarter earnings call.
- Second-quarter same-store sales decreased by 0.8%.
- Second-quarter adjusted profit was 36 cents per share, exceeding estimates of 33 cents.
Albertsons Companies Inc. on Tuesday withdrew its fiscal year 2026 financial forecasts as it initiates a comprehensive business review aimed at improving performance and addressing its cost structure. The grocer is facing challenges from cautious consumer spending, rising food and fuel costs, and intense competition from mass retailers, discount chains, and private-label brands.
CEO Susan Morris stated that the review is intended to "speed up improvements in Albertsons' performance and tackle even harder a cost structure we can no longer afford." The company expects the review to be completed by the fourth quarter ending February 2027, with a new financial framework and turnaround plan to be presented during the fourth-quarter earnings call.
In July, Albertsons had already outlined plans to expand private-label offerings, enhance e-commerce capabilities, restructure its divisions, and centralize merchandising. At that time, the company also reduced its annual targets, leading to a nearly 15% drop in its shares. Albertsons had previously forecast fiscal 2026 adjusted earnings per share between $1.75 and $1.85 and expected annual identical sales to decline by 0.5% to 1.5%.
For the second quarter, Albertsons reported a 0.8% decrease in same-store sales. However, its adjusted profit for the quarter came in at 36 cents per share, surpassing analyst estimates of 33 cents per share, according to data compiled by LSEG.