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Albertsons cuts outlook as ‘cautious consumer’ pressures grocery sales

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Albertsons cuts outlook as ‘cautious consumer’ pressures grocery sales

Albertsons lowered its fiscal 2026 sales and earnings outlook Thursday after weaker grocery demand and a more cautious consumer weighed on its first-quarter performance.

The grocery chain now expects identical sales to decline between 0.5% and 1.5% for the full fiscal year, compared with its previous forecast of flat sales to 1% growth.

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Albertsons also cut its adjusted earnings forecast to between $1.75 and $1.85 per share, down from its prior range of $2.22 to $2.32. Adjusted EBITDA is now expected to range from $3.55 billion to $3.625 billion, compared with its earlier forecast of $3.85 billion to $3.925 billion.

Identical sales fell 0.8% during the quarter ended June 20, while net sales and other revenue edged up 0.2% to $24.94 billion, helped by higher fuel sales. Digital sales increased 13%, although the company said its core grocery business faced mounting pressure from softer industry unit trends.

MAJOR GROCERY CHAIN BEATS WALMART, ALDI IN PRICE WAR AS SHOPPERS HUNT FOR CHECKOUT RELIEF

albertsons location

The grocery chain now expects identical sales to decline between 0.5% and 1.5% for the full fiscal year. (Ethan Miller/Getty Images)

“In the first quarter, our digital and pharmacy businesses continued to deliver strong growth, while core grocery faced increasing pressure from softer industry unit trends and a more cautious consumer,” CEO Susan Morris said in the company’s earnings release.

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Albertsons said it is accelerating investments aimed at strengthening its customer value proposition and improving the shopping experience before anticipated productivity benefits take hold.

“We are choosing to accelerate investments in our customer value proposition and the customer experience ahead of expected productivity benefits because we believe these actions will improve our growth trajectory, strengthen our competitive position, and create long-term shareholder value,” Morris said.

Ticker Security Last Change Change %
ACI ALBERTSONS COS INC 11.44 -3.16 -21.64%

As part of that effort, Albertsons announced an operating realignment called ACI Edge. The company consolidated its 11 divisions into four regions and placed center-store merchandising under a single enterprise team.

Albertsons said the restructuring is intended to accelerate decision-making, improve local execution and bring category management, supplier relationships and merchandising strategy under a more centralized structure.

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First-quarter net income fell to $84.7 million, or 17 cents per share, from $236.4 million, or 41 cents per share, a year earlier. Adjusted earnings declined to 42 cents per share from 55 cents.

Albertsons

Albertsons also announced an operating realignment called ACI Edge. (Bridget Bennett/Bloomberg via Getty Images)

Gross margin narrowed to 26.6% from 27.1%. Albertsons attributed some of the pressure to higher delivery and handling expenses associated with digital growth, along with higher fuel costs.

Separately, Albertsons said Chief Financial Officer Sharon McCollam plans to retire later this year. McCollam will remain in her current role until a successor is named and will then serve in an advisory capacity through Feb. 27, 2027, to assist with the transition.

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Albertsons operated 2,240 stores across 35 states and the District of Columbia as of June 20.

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Alphabet and Tesla earnings spark Magnificent Seven market selloff

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Dow Jones Industrial Average tops 50,000 points for first time

Shares in the Magnificent 7 tech stocks have slumped this week amid investors’ concerns about massive spending by hyperscalers on artificial intelligence infrastructure amid uncertainty about the global economy due to the resumption of hostilities in the Iran war.

The so-called Magnificent Seven tech stocks experienced their biggest one-day drop in over a year on Thursday, with Bloomberg reporting that an index of the group fell 4.8% and erased about $787 billion in market value – the steepest single day decline since April 2025.

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The report noted that as of Thursday’s close, the Mag Seven index was down about 11% from the record high it reached in late May, with about $2 trillion in market cap wiped out.

As of Friday morning, six of the Mag Seven stocks were down over the last five days of trading, with Tesla down over 19%, while shares in Google parent Alphabet (-8.5%), Amazon (-6.3%), Meta (-6%), Microsoft (-1.3%) and Apple (-0.4%) were also down. By contrast, Nvidia shares are up about 1.9% in the last five days.

TESLA TOUTS 380,000 UNSUPERVISED ROBOTAXI MILES WITH ‘ZERO NOTABLE INCIDENTS’

The traders on floor of NYSE

Traders work on the floor of the New York Stock Exchange (NYSE) in Lower Manhattan.  (Michael Nagle/Bloomberg via Getty Images)

Tech stocks’ slide steepened after Alphabet and Tesla released their earnings report after Wednesday’s trading session, with both companies reporting large capital expenditures this year.

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Alphabet announced plans to spend about $200 billion on capex this year, up from a prior estimate of $190 billion, with the higher spending on AI data centers and infrastructure contributing to the company’s quarterly cash flow turning for the first time since Google went public, per Bloomberg’s report.

“Alphabet’s higher investment outlook helps reinforce our view that the AI infrastructure buildout remains a durable theme,” said Edward Jones senior analyst Brian Therien. “However, the negative share-price reaction may indicate that investors are becoming more focused on returns generated on AI-related investments.”

GOOGLE LAUNCHES GLOBAL STUDY OF MILLIONS OF AI CHATS TO UNDERSTAND HOW PEOPLE USE ARTIFICIAL INTELLIGENCE

Tesla CEO Elon Musk

Tesla CEO Elon Musk said that the company needs to spend as much as it can on capital expenditures without being wasteful. (Richard Bord/WireImage)

Tesla’s profits came in well below the estimates of Wall Street analysts amid a ramp up in spending, with CEO Elon Musk saying on the company’s earnings call that 2026 will be a “massive capex year” and that the company “should be spending on capex as fast as we can – spend as fast as we can without it being too wasteful.”

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The company’s spending aims to enhance its AI capabilities as well as boosting production of Optimus humanoid robots, as well as robotaxis and autonomous vehicles.

ELON MUSK LOSES TRILLIONAIRE STATUS AFTER TECH SELL-OFF ERASES BILLIONS FROM FORTUNE

Ticker Security Last Change Change %
NVDA NVIDIA CORP. 208.76 -3.30 -1.56%
AAPL APPLE INC. 321.66 -4.23 -1.30%
MSFT MICROSOFT CORP. 381.58 -8.76 -2.24%
GOOGL ALPHABET INC. 317.69 -24.40 -7.13%
AMZN AMAZON.COM INC. 233.66 -11.19 -4.57%
META META PLATFORMS INC. 606.10 -21.07 -3.36%
TSLA TESLA INC. 319.69 -54.32 -14.52%

Ryan Lee, senior vice president of product and strategy at Direxion, said in a note that, “While Tesla continues to invest heavily in AI and robotics, monetization remains the central concern following the earnings miss.”

“Tesla has become the physical AI story, with the potential to bring artificial intelligence into consumers’ everyday lives through autonomous vehicles and robotics. The question is how quickly those investments can begin supporting the valuation,” Lee added.

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Amerant Bancorp Inc. (AMTB) Q2 2026 Earnings Call Transcript

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OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript