Albertsons stock plunges as it says weaker grocery spending will cut into sales and earnings
Food inflation and tighter budgets due to high gas prices, among other factors, appear to be hurting spending. It also now expects identical sales, a metric similar to comparable sales, to be in a range of down 0.5% to 1.5%, compared to a previous expectation of flat to up 1%.For the first fiscal quarter of the year, the company reported that identical sales fell 0.8%.
- ▪Food inflation and tighter budgets due to high gas prices, among other factors, appear to be hurting spending.
- ▪It also now expects identical sales, a metric similar to comparable sales, to be in a range of down 0.5% to 1.5%, compared to a previous expectation of flat to up 1%.For the first fiscal quarter of the year, the company reported that identi
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Shares of grocer Albertsons sank nearly 15% on Thursday after the company lowered its fiscal 2026 outlook, citing softer demand and a more cautious consumer.The company said it is now "moving decisively" to invest in the customer experience because it believes that will improve its growth trajectory."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 a statement.The company's outlook cut comes amid broader signs that U.S. consumers have scaled back their grocery trips. Food inflation and tighter budgets due to high gas prices, among other factors, appear to be hurting spending.
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