Albertsons Shares Tumble as Consumer Caution Hits Grocery Sales

CEO Susan Morris acknowledged the cooling demand during an earnings call, noting that while pharmacy and digital segments remain bright spots, core grocery sales are feeling the weight of tighter household budgets. High food inflation and volatile gas prices have fundamentally altered shopping patterns, leading to a 0.8% decline in identical sales during the first quarter.

Financial projections for the full year now reflect this reality. Net income is expected to fall between $1.75 and $1.85 per share, a sharp drop from the previous forecast of $2.22 to $2.32. Adjusted EBITDA guidance has similarly been reduced to a range of $3.55 billion to $3.625 billion. Even with these headwinds, leadership maintains that prioritizing loyalty and store traffic will eventually stabilize the company’s growth trajectory.