Overview

• US food and drug retailer's fiscal Q1 revenue slightly beat analyst expectations

• Adjusted EPS for fiscal Q1 missed analyst expectations

• Company launched ACI Edge realignment and cut fiscal 2026 outlook amid softer grocery demand

Outlook

• Albertsons now expects fiscal 2026 identical sales to decline 1.5% to 0.5%

• Company lowers fiscal 2026 adjusted EBITDA forecast to $3.55 bln-$3.63 bln

• Albertsons cuts fiscal 2026 adjusted EPS outlook to $1.75-$1.85

Result Drivers

• SOFTER GROCERY DEMAND - Co said core grocery faced pressure from softer industry unit trends and a more cautious consumer, per CEO Susan Morris

• DIGITAL AND PHARMACY GROWTH - Digital sales rose 13% and pharmacy sales grew despite IRA headwinds, according to the company

• HIGHER COSTS - Gross margin declined due to increased delivery and handling costs from digital sales growth and higher fuel costs, partially offset by improved pharmacy margins

Company press release: ID:nBw1DhwFTa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Slight Beat*	$24.94 bln	$24.82 bln (16 Analysts)
Q1 Adjusted EPS	Miss	$0.42	$0.54 (19 Analysts)
Q1 EPS		$0.17
Q1 Adjusted Net Income	Miss	$210.30 mln	$263.72 mln (12 Analysts)

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the food retail & distribution peer group is "buy"

• Wall Street's median 12-month price target for Albertsons Companies Inc is $20.00, about 37% above its July 22 closing price of $14.60

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

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