European Investor
13 Oct 2026, 15:32
Albertsons Rises 2.3% as Turnaround Plan Overshadows Weak Q2 Profitability
Albertsons Companies (NYSE: ACI) shares rose about 2.3% after the grocer reported second-quarter fiscal 2026 results and announced a broader business review aimed at accelerating its turnaround and reducing costs.
Quarterly revenue was nearly flat at $18.89 billion, while identical sales declined 0.8%. Digital remained a bright spot, with sales rising 11%, while pharmacy also continued to grow despite Inflation Reduction Act-related pressure.
Profitability weakened. Net income fell to $51.5 million, or $0.11 per share, from $168.5 million, or $0.30 per share, a year earlier. Adjusted EPS declined to $0.36 from $0.44, while adjusted EBITDA fell to $784 million from $848.4 million.
Margins also came under pressure. Gross margin declined to 26.8% from 27.0%, partly due to higher digital delivery costs and shrink, while selling and administrative expenses rose as a percentage of revenue because of weaker identical sales.
The more important catalyst appears to be management’s accelerated turnaround effort. Albertsons said it is conducting a comprehensive review of its customer strategy, cost structure, operating model, banner portfolio, market assets, businesses and capital allocation priorities. This follows the launch of ACI Edge, which consolidated 11 divisions into four regions and centralized center-store merchandising.
However, the company also withdrew its fiscal 2026 outlook and said it will not provide updated guidance until the business review is completed during the fourth quarter. A refreshed short- and long-term financial framework is expected alongside the turnaround plan, with an investor day planned for spring 2027.
The 2.3% gain suggests investors are looking past the weak quarter and focusing instead on the potential for deeper cost reductions, portfolio changes and improved execution under the new turnaround program.
Albertsons Companies (NYSE: ACI) shares rose about 2.3% after the grocer reported second-quarter fiscal 2026 results and announced a broader business review aimed at accelerating its turnaround and reducing costs.
Quarterly revenue was nearly flat at $18.89 billion, while identical sales declined 0.8%. Digital remained a bright spot, with sales rising 11%, while pharmacy also continued to grow despite Inflation Reduction Act-related pressure.
Profitability weakened. Net income fell to $51.5 million, or $0.11 per share, from $168.5 million, or $0.30 per share, a year earlier. Adjusted EPS declined to $0.36 from $0.44, while adjusted EBITDA fell to $784 million from $848.4 million.
Margins also came under pressure. Gross margin declined to 26.8% from 27.0%, partly due to higher digital delivery costs and shrink, while selling and administrative expenses rose as a percentage of revenue because of weaker identical sales.
The more important catalyst appears to be management’s accelerated turnaround effort. Albertsons said it is conducting a comprehensive review of its customer strategy, cost structure, operating model, banner portfolio, market assets, businesses and capital allocation priorities. This follows the launch of ACI Edge, which consolidated 11 divisions into four regions and centralized center-store merchandising.
However, the company also withdrew its fiscal 2026 outlook and said it will not provide updated guidance until the business review is completed during the fourth quarter. A refreshed short- and long-term financial framework is expected alongside the turnaround plan, with an investor day planned for spring 2027.
The 2.3% gain suggests investors are looking past the weak quarter and focusing instead on the potential for deeper cost reductions, portfolio changes and improved execution under the new turnaround program.
