Albertsons Companies has withdrawn its fiscal 2026 outlook as it conducts an operational review following lower second-quarter profit and falling identical sales.
The US food and drug retailer will withhold updated forecasts until the review concludes in its fourth quarter, when it plans to present refreshed financial frameworks alongside a turnaround plan.
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In its first quarter, it had forecast identical sales between -1.5% and -0.5%, adjusted EBITDA of $3.55bn to $3.62bn and adjusted net income per Class A common share of $1.75 to $1.85.
The ongoing examination covers customer strategy, cost structures, operating models, banner portfolios, market assets, and capital allocation priorities.
It follows the ACI Edge programme launched in July 2026, which consolidated 11 divisions into four regions and centralised centre-store merchandising under a single team.
For the second quarter ended 12 September 2026, net income fell 69.4% to $51.5m, and diluted earnings per share dropped to $0.11 from $0.30.
Adjusted net income declined 27.9% to $179m, with adjusted earnings per share decreasing to $0.36 from $0.44.
Operating income fell to $174.5m from $295.3m, whilst adjusted EBITDA declined to $784m from $848.4m.
Net sales and other revenue dropped to $18.89bn from $18.91bn, driven by a 0.8% decrease in identical sales.
Digital sales grew 11%, whilst higher fuel takings and pharmacy revenue – despite headwinds from the Inflation Reduction Act – partially offset the top-line reduction.
Gross margin narrowed to 26.8% from 27% due to digital delivery and handling costs alongside higher shrink, partly offset by improved pharmacy margins.
Cost management offset operating inflation and merger litigation costs, while store impairments and equipment disposals lifted property disposition losses to $42.4m from $4.4m.
First-half net sales reached $43.83bn, compared with $43.79bn a year earlier, but operating income fell to $438.1m from $744.6m, and net income dropped to $136.2m from $404.9m.
Capital expenditure reached $899.6m, funding 38 remodels, seven store openings, and digital investments.
As of 12 September 2026, the company operated 2,240 stores, including 1,709 pharmacies and 408 fuel centres.
Albertsons CEO Susan Morris said: “We are launching a comprehensive business review to speed up improvements in Albertsons’ performance and tackle even harder a cost structure we can no longer afford. Our work will find opportunities to simplify the organisation, improve decision-making, reinvest savings in customer value, and boost long-term shareholder returns.”
Separately, Albertsons is seeking over $9bn from Kroger following their collapsed $24.6bn merger, with a two-week court hearing beginning later this month.
