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ACI · Albertsons Companies, Inc.

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$12.42 +0.02 (+0.16%) At close · Aug 14
Market Cap
$6.03B
Shares
485.33M
All earnings calls

Earnings call · FY2027 Q1

Albertsons Companies, Inc. Q1 FY2027 Earnings Call

Albertsons Companies, Inc. Q1 FY2027 Earnings Call

Concluded Jul 23, 2026 Audio replay Verified speakers
Jul 23, 2026 4:40 8 turns
Period
FY2027 Q1
Runtime
4:40
Sources
3 artifacts

Executive readout · one minute

What matters this quarter

Albertsons reported Q1 FY2026 net sales of $24.94B (up 0.2%) but identical sales declined 0.8% as softer industry unit trends pressured core grocery, while digital sales rose 13% and adjusted EBITDA reached $1,013M. The company announced ACI Edge, simplifying from eleven divisions to four regions, and revised its fiscal 2026 outlook to accelerate value proposition investments amid a cautious consumer.

ACI Edge Restructuring / Operating Model 11 Market Portfolio Review 10 Digital / E-commerce Profitability 9 Share / Channel Performance 9 Value Perception & Pricing Strategy 5 Consumer / Unit Pressure 4

Management tone

Balanced

Net tone +8 · moderate hedging

Grounding quotes
  • “our primary focus right now is on our core business and driving an inflection in unit growth”
  • “we're constantly evaluating our business and making decisions where strategically we want to lean in and grow and where perhaps some areas are less strategic and we want to exit”
  • “it's not a one-size-fits-all answer”
  • “the West seems to be more under pressure from an industry perspective on units than the middle part of the country and the East”

Research coverage

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Research materials

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Key takeaways

What improved, and what deserves a closer read.

Constructive signals

  • Digital sales increased 13% in Q1 FY2026, with management stating digital economics are improving through higher order density, better fulfillment productivity, and stronger customer engagement
  • Pharmacy sales continued to grow despite ongoing Inflation Reduction Act headwinds, with pharmacy margin improvements helping offset other gross margin pressure
  • Adjusted EBITDA was $1,013 million and adjusted net income was $210 million, or $0.42 per share
  • Net sales and other revenue increased 0.2% to $24,941.6 million, driven by higher fuel sales
  • ACI Edge restructuring simplifies the operating model from eleven divisions to four regions and centralizes center-store merchandising to strengthen accountability, accelerate decision-making, and leverage scale
  • Share with traditional food is in a better spot than multi-outlet as a whole, according to management

Risks & pressure points

  • Identical sales decreased 0.8% in Q1 FY2026, reflecting softer industry unit trends and a more cautious consumer that did not meet company expectations
  • Gross margin rate decreased to 26.6% from 27.1% in Q1 FY2025, a 23 basis point decline ex-fuel and LIFO, driven by higher delivery and handling costs from digital growth and higher fuel costs
  • Net income was $85 million, or $0.17 per share
  • Selling and administrative expenses increased to 25.6% of net sales from 25.4%, a 42 basis point increase ex-fuel, driven by higher rent and occupancy, merger-related litigation costs, business transformation costs, and depreciation and amortization
  • Company revised its fiscal 2026 outlook, choosing to accelerate customer value proposition investments ahead of expected productivity benefits
  • Regional unit pressure is more pronounced in the West than in the middle of the country and the East, per management

Key moments

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Quarter detail

How the reported period landed and where the business moved.

Capital returned

Dividend / share
$0.17
Full-screen source Call document