Albertsons shares slide after grocer cuts 2026 outlook

Albertsons shares fell nearly 15% on Thursday after the grocery chain reduced its fiscal 2026 guidance, saying weaker demand in its main grocery business would weigh on sales and earnings. The company now expects full-year net income of $1.75 to $1.85 a share, down from its prior forecast of $2.22 to $2.32 a share.

The revision places Albertsons among consumer-facing companies dealing with more selective household spending. The company said customers have become more cautious, while its core grocery operations faced pressure from softer industry unit trends.

Chief Executive Susan Morris said in a company statement that Albertsons’ digital and pharmacy operations continued to grow in the first quarter, even as grocery demand weakened. She said the company is “moving decisively” to invest in the customer experience, which Albertsons believes can improve its growth trajectory.

Guidance cut across key measures

Albertsons also lowered its adjusted EBITDA outlook to a range of $3.55 billion to $3.625 billion. Its earlier projection called for adjusted EBITDA of $3.85 billion to $3.925 billion.

The company reduced its view for identical sales, a measure similar to comparable sales. Albertsons now expects identical sales to decline 0.5% to 1.5% for the fiscal year. Its previous forecast called for that measure to range from flat to up 1%.

Identical sales are closely watched in food retail because they show how the existing business is performing without relying on expansion from new stores. A decline can reflect fewer transactions, lower unit volumes, smaller baskets or a mix of those factors, depending on the retailer’s category and pricing trends.

For the first fiscal quarter, Albertsons said identical sales declined 0.8%. Net income fell to $84.7 million, or 17 cents a share, from $236.4 million, or 41 cents a share, in the same period a year earlier.

Consumer pressure weighs on near-term results

The company’s update followed broader signs, reported by CNBC, that U.S. consumers have pulled back on grocery trips. CNBC cited food inflation and tighter household budgets, including pressure tied to high gasoline prices, as factors that appear to be affecting spending.

Albertsons’ comments point to a split in its business: growth in digital and pharmacy, alongside weaker demand in its traditional grocery aisles. That mix matters because grocery remains the company’s core operation and is central to traffic, unit volumes and customer loyalty.

On a call with analysts, Morris said consumer pressure is affecting near-term earnings. She added that Albertsons aims to improve “traffic, units, loyalty and the overall trajectory of the business over time.”

The share-price reaction reflected investor concern that softer food retail demand could carry through the year. Albertsons did not frame the revised outlook as a single-quarter issue, instead cutting annual expectations for earnings, adjusted EBITDA and identical sales.

This story draws on original reporting from CNBC.