Albertsons Reports Q2 Earnings Amid Declining Sales and Launches Turnaround Strategy
Albertsons Companies (ACI) reported second-quarter earnings for fiscal year 2026, showing a decline in identical sales by 0.8% due to ongoing pressure on core retail operations. Despite this, digital sales grew by 11%, indicating continued adoption of e-commerce services. Adjusted EBITDA reached $784 million or 4.1% of net sales and other revenue, while adjusted EPS fell from $0.44 in the prior year to $0.36 per diluted share. Net sales totaled $18.89 billion for Q2, a slight decrease of 0.1%. Gross margin rate dropped by 17 basis points excluding fuel and LIFO due to higher e-commerce mix and shrinkage costs. The company reported operating cash flow of $1.2 billion in the first half of fiscal year 2026 compared to $1.3 billion a year earlier, with free cash flow exceeding $300 million. Albertsons announced plans for a comprehensive business review and turnaround strategy due to underperformance relative to expectations. Management cited challenges including pharmacy headwinds from policy changes like the Inflation Reduction Act and supply chain disruptions such as Cyclospora outbreaks affecting produce sales.
Topics: adjusted earnings capital expenditures digital sales growth retail