Albertsons stock plunges as it says weaker grocery spending will cut into sales and earnings - CNBC

What the report says

CNBC reported that Albertsons shares fell more than 20% on Thursday after the grocery chain warned that weaker demand in its core supermarket business would weigh on its fiscal 2026 results. The company lowered its full-year forecast, pointing to a more cautious consumer and softer industrywide unit trends, even as its digital and pharmacy operations continued to grow.

Albertsons now projects full-year net income of $1.75 to $1.85 per share, down from its earlier outlook of $2.22 to $2.32 per share. It also reduced adjusted EBITDA guidance to $3.55 billion to $3.625 billion, compared with a prior range of $3.85 billion to $3.925 billion. The company now expects identical sales to decline between 0.5% and 1.5%, a reversal from its previous forecast for flat to 1% growth.

For the first fiscal quarter, Albertsons said identical sales dropped 0.8%. Net income fell to $84.7 million, or 17 cents per share, from $236.4 million, or 41 cents per share, in the same period a year earlier. CEO Susan Morris said the company is investing in the customer experience with the aim of improving traffic, sales units, loyalty and longer-term performance, according to CNBC.

The report places Albertsons’ weaker outlook in the context of strained U.S. household budgets, with grocery shoppers making fewer trips as food costs and other expenses, including gasoline, pressure spending. The update matters because Albertsons is a major U.S. grocer, and its guidance offers a read on consumer behavior in an essential retail category.