Albertsons flags soft sales, settlement
Grocery chain Albertsons forecast annual sales below Wall Street expectations and simultaneously agreed to a national opioid settlement of roughly $774 million. The sales warning and settlement were reported together, marking both operating strain and a sizable litigation cost for the company ( ).
Albertsons told investors on April 14 that sales growth this year will be weaker than Wall Street expected. (businesswire.com; usnews.com) The Boise, Idaho-based grocer said fiscal 2026 identical sales are expected to range from flat to up 1%, below the 1.58% analyst estimate cited by Reuters. Albertsons also guided adjusted earnings to $2.22 to $2.32 a share. (usnews.com; finance.yahoo.com) The same day, Albertsons said it had reached a national framework to settle opioid claims for about $774 million. Colorado Attorney General Phil Weiser said the agreement in principle totals more than $773.7 million, with at least $32 million set for Colorado. (coag.gov; retailtouchpoints.com) Albertsons already booked the settlement cost in its latest quarter, recording a $600 million charge after tax tied to the opioid framework. That helped push the company to a quarterly net loss of $481 million, or 94 cents a share. (businesswire.com) The sales warning lands as supermarket chains fight harder for price-sensitive shoppers. Reuters said Walmart, Target and Kroger have been cutting prices on staples, while Albertsons also faces pressure from Amazon. (usnews.com) Albertsons said fourth-quarter identical sales rose 0.7%, but pharmacy trends cut into that result. The company said pricing changes tied to the Inflation Reduction Act and a shift in the pharmacy business hurt sales more than expected. (businesswire.com) The company’s own outlook shows how much pharmacy is distorting the headline number. Albertsons told investors that fiscal 2026 identical sales would be 1.5% to 2.5% without the Inflation Reduction Act headwind, versus the reported outlook of 0% to 1%. (finance.yahoo.com) Albertsons is still posting growth in other parts of the business. Digital sales rose 16% in the quarter, loyalty members increased 12% to 51.2 million, and full-year digital sales rose 21%. (businesswire.com) The company is making those moves after its $24.6 billion merger with Kroger was blocked in December 2024, ending the deal and leaving Albertsons to pursue a stand-alone plan. The Federal Trade Commission says the case is closed, while Albertsons and Kroger are still fighting in Delaware over the failed merger agreement. (ftc.gov; ir.kroger.com) Albertsons also raised its quarterly dividend 13% and increased its remaining share repurchase authorization to $2 billion on April 14. Even with those shareholder payouts, the company’s clearest message was that 2026 starts with slower sales and a large legal bill already on the books. (businesswire.com)
