Albertsons significantly reduced its financial guidance for the full year following disappointing first-quarter results. The company cited softening demand and more cautious consumer behavior as primary factors constraining its business performance.
For fiscal 2026, the company now projects net income between $1.75 and $1.85 per share, a substantial decline from its previous guidance range of $2.22 to $2.32 per share. The company also lowered adjusted EBITDA expectations to between $3.55 billion and $3.625 billion, compared with prior guidance of $3.85 billion to $3.925 billion. Additionally, Albertsons adjusted its identical sales outlook to a range of down 1.5% to down 0.5%, shifting from a prior expectation of flat to up 1%.
In the first fiscal quarter, identical sales fell 0.8%. The company reported net income of $84.7 million, or 17 cents per share, compared with $236.4 million, or 41 cents per share, during the comparable prior-year quarter. While digital and pharmacy operations showed continued strength, the company’s core grocery segment encountered mounting challenges from broader industry trends and consumer pullback.
CEO Susan Morris attributed the weakness partly to external factors affecting household finances and grocery consumption patterns. The company indicated it is investing more resources into improving customer experience to support long-term growth. Morris noted on an analyst call that despite near-term earnings pressures, the organization remains focused on driving traffic, expanding units, strengthening loyalty programs, and improving overall business trajectory.
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