Updated Version 2 - US supermarket chain Albertsons suspends full-year earnings forecasts during business review.

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Reuters, October 13 - Albertsons Companies (ACI.N) on Tuesday withdrew its fiscal 2026 performance forecast as part of its turnaround plan, with the company now reassessing its strategy, cost structure, and business portfolio.

With food and fuel costs rising, coupled with fierce competition from major retailers such as Walmart WMT.O, discount chains, and private labels, the company has been facing a situation where consumer (especially low-income group) spending has grown more cautious.

“We are launching a comprehensive business review to accelerate the improvement of Albertsons’ performance and to tackle head-on a cost structure that we can no longer afford,” CEO Susan Morris said on Tuesday.

The company said the review will be completed in the fourth quarter ending February 2027, and it expects to provide a “new financial framework” and a comprehensive turnaround plan during its fourth-quarter earnings call.

Pre-market on Tuesday, the company’s shares fell 3%. So far this year, its stock price has dropped by 27%.

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In July this year, Albertsons (link) outlined its plans to expand its private label product lines, optimize e-commerce, reorganize its 11 business divisions into four regions, and centralize merchandising to adapt to the trend of consumers shifting toward lower-priced products.

At that time, the company also sharply lowered its annual targets, causing the stock price to fall nearly 15%.

Albertsons had previously forecast adjusted earnings per share for fiscal 2026 to be between $1.75 and $1.85, and expected annual same-store sales to decline by 0.5% to 1.5%.

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The food retailer also reported on Tuesday that its second-quarter same-store sales declined by 0.8%.

However, according to data compiled by London Stock Exchange Group (LSEG), the company’s adjusted earnings per share for the second quarter came in at 36 cents, beating market expectations of 33 cents.

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