Albertsons Stock Plummets After Slashing Full-Year Profit Forecast

Albertsons Companies (NYSE: ACI) shares plunged 23.5% in afternoon trading after the grocery chain reported first-quarter earnings that missed analyst expectations and issued a severe cut to its full-year financial outlook.

Disappointing Results and Drastic Outlook Cut

For the first quarter of fiscal 2026, Albertsons posted adjusted earnings per share of $0.42, falling well short of the Wall Street consensus of $0.54. The company also reported that identical store sales declined by 0.8% year-over-year, signaling weakening consumer demand.

Compounding the weak quarterly performance, management slashed its full-year adjusted EPS guidance to a new range of $1.75 to $1.85, a sharp reduction from its prior forecast of $2.22 to $2.32. Full-year adjusted EBITDA guidance was also trimmed to $3.59 billion, roughly $300 million below what analysts had projected, according to Investing.com.

Executive Departure and Restructuring

Adding to investor uncertainty, the company announced that President and CFO Sharon McCollam plans to retire later this year. The company has initiated a search for her replacement.

Ad

Albertsons also unveiled a broad operational restructuring plan. The company will collapse its 11 operating divisions into four geographic regions and centralize its center-store merchandising. CEO Susan Morris stated the moves are designed to "accelerate decision-making and sharpen the company’s competitive edge."

Market Reaction and Sector-Wide Headwinds

The combination of negative news sent Albertsons shares to a new 52-week low of $11.02 during intraday trading. In response, Wells Fargo downgraded the stock from Overweight to Equal Weight and set an $11 price target, reflecting the dimmer near-term earnings outlook.

The results highlight a challenging environment for traditional grocers, as sustained high food and gas prices push consumers toward mass-market retailers and discount chains like Aldi. Shares of rival Kroger (NYSE: KR) also declined, indicating the headwinds are affecting the broader grocery sector.