Albertsons shares slide after grocer cuts profit forecast
Albertsons lowered its fiscal 2026 outlook after weaker grocery demand and cautious shoppers squeezed its core business.
By Frankie Delgado · News Reporter
2 min read
Albertsons shares dropped sharply Thursday after the supermarket chain warned that shoppers are spending more carefully and cut its full-year profit forecast.
The grocer said its core grocery business came under pressure in the first fiscal quarter, even as its digital and pharmacy operations continued to grow. CEO Susan Morris said in a company statement that grocery demand was hurt by softer industry unit trends and a more cautious consumer.
The stock fell nearly 15% after the update, according to CNBC, as investors reacted to the weaker outlook and the company’s first-quarter results.
Profit forecast gets a trim
Albertsons now expects full-year net income of $1.75 to $1.85 per share for fiscal 2026. That is down from its previous forecast of $2.22 to $2.32 per share.
The company also lowered its adjusted EBITDA outlook to between $3.55 billion and $3.625 billion. Its earlier projection had called for $3.85 billion to $3.925 billion.
Albertsons also pulled back its sales expectations. The company now expects identical sales, a measure similar to comparable sales, to range from a decline of 0.5% to growth of 1.5%. Its prior forecast had called for identical sales to be flat to up 1%.
The first-quarter numbers showed the strain already hitting the aisles. Albertsons said identical sales fell 0.8% in the period.
Net income also slid. The company reported profit of $84.7 million, or 17 cents per share, compared with $236.4 million, or 41 cents per share, in the same quarter a year earlier.
Shoppers are pulling back
The cut comes as grocery chains and food companies face signs that U.S. households are making fewer trips and watching budgets more closely. CNBC has reported that food inflation, high gas prices and tighter household finances appear to be weighing on grocery spending.
Albertsons said the pressure on consumers is expected to hurt near-term earnings. Morris told analysts the company is trying to improve traffic, units, loyalty and the overall direction of the business over time.
The company said it is “moving decisively” to put more money into the customer experience, a move it says it believes can help improve growth.
Albertsons operates in a grocery market where consumers remain highly sensitive to prices after years of elevated food costs. Thursday’s guidance cut showed that even established supermarket chains are feeling the pinch when shoppers start skipping items, stretching trips or trading down.
For investors, the message was plain: Albertsons still has growth in digital and pharmacy, but its main grocery engine is facing a tougher consumer than the company expected.
This story draws on original reporting from CNBC.