Albertsons beat second-quarter Wall Street estimates, but management said the supermarket and drug store operator has pulled its fiscal-year outlook as it conducts a wide-ranging business review.
Net income was $51.5 million, or 11 cents per diluted share, versus $168.5 million, or 30 cents per diluted share, in the year-earlier quarter. Adjusted for one-time events, the company reported net income of $179 million, or 36 cents per diluted share, versus $248.4 million, or 44 cents per diluted share, in the prior-year period.
Zacks Investment Research analysts estimated earnings per adjusted diluted share of 33 cents and revenues of $18.83 billion.
Identical sales slipped by 0.8% year-over-year in the quarter. Net revenues were $18.89 billion versus $18.92 billion in the year-before period. Operating income was $174.5 million versus $295.3 million in the year-previous quarter. Digital sales rose 11% year over year.
Albertsons announced in July it had inaugurated ACI Edge, an operating structure realignment intended to accelerate execution, increase accountability and more effectively leverage its scale. In the realignment, the company consolidated its 11 divisions into four regions and fully centralized center-store merchandising under a single enterprise team. Albertsons said it views ACI Edge as the first step in a broader turnaround to improve operating performance, strengthen competitiveness, and create greater long-term shareholder value. As such, the company is reviewing its customer strategy, cost structure, operating model, banner portfolio, market assets and businesses, and capital allocation priorities.
Second-quarter performance was consistent with the company’s expectations as reflected in its previously revised outlook, but Albertsons decided it would no longer provide a fiscal 2026 outlook. Albertsons said it will not provide an updated forecast until it completes the full business review underway in the fourth quarter. The review, the retailer said, will help the company set clear priorities and fully evaluate the associated financial model before providing an updated outlook.
“Although our second-quarter performance was in line with the expectations in our revised outlook, our results do not reflect the potential of the company,” said Susan Morris, Albertsons CEO. “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 organization, improve decision-making, reinvest savings in customer value, and boost long-term shareholder returns.”
