Albertsons cut its annual sales and profit forecasts on Thursday after reporting a sharp drop in first-quarter earnings, sending Albertsons stock down more than 20%.
The Boise, Idaho-based grocer now expects identical sales to fall between 0.5% and 1.5% for fiscal 2026, compared with a prior target of flat to up 1%, the company said
Adjusted earnings per share guidance was cut to a range of $1.75 to $1.85, down from a previous range of $2.22 to $2.32. Adjusted EBITDA guidance was lowered to between $3.55 billion and $3.625 billion, from a prior range of $3.85 billion to $3.925 billion. In the 16-week period ended June 20, 2026, Albertsons posted net income of $84.7 million, or $0.17 per share, a steep decline from $236.4 million, or $0.41 per share, earned in the year-earlier quarter.
Identical sales fell 0.8% in the quarter, while adjusted net income came in at $210.3 million, or $0.42 per share, down from $318.9 million, or $0.55 per share, a year ago. “In the first quarter, our digital and pharmacy businesses continued to deliver strong growth, while core grocery faced increasing pressure from softer industry unit trends and a more cautious consumer,” Chief Executive Officer Susan Morris said in a statement. On a post-earnings call, Morris identified Walmart and Amazon as the primary destinations drawing customers away from Albertsons, describing the shift as concentrated among shoppers gravitating toward retailers that compete aggressively on price, according to Reuters. Rivals including Kroger stock and Sprouts Farmers Market stock also fell on Thursday.