Albertsons halts 2026 outlook and launches comprehensive review after profit plunge

Albertsons Companies reported a dramatic decline in second-quarter profit, with net income dropping to $51.5 million, or $0.11 per share, compared with $168.5 million a year earlier, while net sales slipped 0.1% to $18.89 billion. Because of the earnings slide, the grocery chain announced it will suspend its fiscal 2026 financial outlook and undertake a comprehensive business review covering its cost structure, customer strategy, operating model, banner portfolio and capital allocation.

CEO Susan Morris said the review is intended to accelerate the company's recovery and address a cost structure it can no longer afford. Albertsons expects to unveil an updated financial framework and turnaround plan during its fourth-quarter earnings call and to hold an investor day in spring 2027. The initiative builds on the ACI Edge reorganization announced in July, and the company continues to pay a $0.17 per share dividend and repurchase shares.

The review comes as Albertsons pursues legal action against Kroger, seeking more than $9.3 billion after the collapse of a proposed $24.6 billion merger, with a Delaware Chancery Court trial set for later this month. Executive chair Meg Whitman was appointed in September to help refine strategy.