Albertsons cut its full-year earnings and sales forecasts after reporting weaker consumer spending and softer industry trends.
Albertsons shares fell nearly 15% after the grocer reduced its fiscal 2026 guidance, citing softer demand and cautious consumer behavior. The company now expects net income between $1.75 and $1.85 per share, down from $2.22 to $2.32 previously, and adjusted EBITDA of $3.55 billion to $3.625 billion, below the prior $3.85 billion to $3.925 billion range.
The company reported first-quarter identical sales declined 0.8%, compared to expectations of flat to up 1%. Net income dropped to $84.7 million, or 17 cents per share, from $236.4 million, or 41 cents per share, in the same period last year. CEO Susan Morris attributed the pressure to softer industry trends and tighter consumer budgets amid high gas prices and food inflation.
Albertsons also lowered its identical sales forecast to a decline of 0.5% to 1.5%, signaling continued weakness in core grocery demand. Digital and pharmacy segments remained strong, but broader economic pressures weighed on results.