Albertsons Predicts Lower Annual Sales Amid Weakened Demand

April 14 — Albertsons, the Boise, Idaho-based grocer, said it sees fiscal 2026 same-store sales flat to up 1%.

The guidance sits below analysts’ average forecast of a 1.58% gain. Shares fell about 4% on the update.

Quarterly results

The retailer reported adjusted fourth-quarter earnings per share of $0.48. That beat the street estimate of $0.43.

However, Albertsons recorded a net loss of $480.8 million for the quarter. A year earlier it had posted a $171.8 million profit.

The company attributed the swing to charges tied to opioid-related claims. Fourth-quarter gross margin was 27.2%, down from 27.4% a year ago.

Outlook and profit guidance

Albertsons predicts lower annual sales as demand softens, citing intense competition and price pressure. Management said lower-income customers face the most strain.

The firm set full-year adjusted earnings per share guidance between $2.22 and $2.32. The midpoint sits slightly under the $2.28 consensus estimate.

Opioid settlement

The company agreed to pay $774 million over nine years. The payment will resolve thousands of lawsuits brought by states, local governments and Native American tribes.

Costs, margins and supply pressures

Albertsons expects margins to be flat to slightly better in 2026. That outlook factors in higher transportation and distribution costs.

Management pointed to rising fuel prices tied to the Iran conflict as a driver of those expense increases. The chain also operates hundreds of gas stations.

Competitive environment

Discount chains and large retailers have cut prices on essentials. Competitors named include Walmart, Target, Kroger and online players such as Amazon.

Industry analysts say traditional supermarkets face pressure from both discounters and specialty grocers. Albertsons highlighted customers’ growing focus on value.

Market reaction

Investors pared the stock after the sales outlook disappointed Street estimates. The company’s beat on adjusted EPS did not offset concerns about demand and legal costs.

Reporting for Filmogaz.com from Bengaluru on April 14.