Oct 13 (Reuters) - Albertsons withdrew its fiscal 2026 forecasts on Tuesday as the grocer reviews its strategy, cost structure and portfolio of businesses as part of a turnaround effort.
The company has been facing cautious consumer spending, particularly by lower-income shoppers, as food and fuel costs climb, as well as stiff competition from mass retailers including Walmart, discount chains and private-label brands.
"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," CEO Susan Morris said on Tuesday.
The company said the review will be completed by the fourth quarter ending February 2027 and that it expects to provide a "fresh financial framework" and a comprehensive turnaround plan by the fourth-quarter earnings call.
Shares were down 3% premarket on Tuesday. They have fallen 27% this year.
In July, Albertsons outlined plans to expand private-label offerings, improve e-commerce, restructure its 11 divisions into four regions and centralize merchandising as it sought to adapt to customers trading down.
At the time, the company also slashed its annual targets, sending shares down nearly 15%.
Albertsons had forecast fiscal 2026 adjusted earnings per share in the range of $1.75 to $1.85 and said it expected annual identical sales to decline in the range of 0.5% to 1.5%.
The grocer on Tuesday also reported that its same-store sales in the second quarter fell 0.8%.
But it posted second-quarter adjusted profit of 36 cents per share, beating estimates of 33 cents per share, according to data compiled by LSEG.
(Reporting by Sanskriti Shekhar in Bengaluru; Editing by Sahal Muhammed)
