Albertsons Companies (ACI) Q1 2027 earnings summary

Executive summary

• Identical sales declined 0.8% year-over-year, while digital sales grew 13% and pharmacy remained strong despite IRA headwinds.

• Net sales and other revenue rose 0.2% year-over-year to $24.94 billion, driven by higher fuel sales.

• Net income was $84.7 million ($0.17 per share), with adjusted net income at $210.3 million ($0.42 per share); adjusted EBITDA was $1,013.2 million.

• Launched ACI Edge, consolidating 11 divisions into four regions and centralizing merchandising to accelerate execution and improve competitiveness.

• Continued investments in digital, loyalty, AI, and customer value to drive long-term growth and competitiveness.

Financial highlights

• Gross margin was 26.6%, down from 27.1% year-over-year, mainly due to higher delivery, handling, and fuel costs and digital sales mix shift.

• Selling and administrative expenses rose to 25.6% of revenue, up from 25.4%, impacted by rent, occupancy, litigation, and transformation costs.

• Interest expense increased to $167 million from $142 million due to higher borrowings and rates.

• Digital sales grew 13%, reaching nearly 10.5% penetration; e-commerce was profitable in Q1.

• Capital expenditures were $522.1 million, including 15 remodels, four new stores, and digital investments.

Outlook and guidance

• Fiscal 2026 identical sales expected to decline 1.5% to 0.5%, or 0% to 1% excluding a 150 bps pharmacy IRA headwind.

• Adjusted EBITDA guidance: $3.55–$3.625 billion; adjusted EPS: $1.75–$1.85 per share.

• Capital expenditures projected at $1.9–$2 billion; $600 million in share repurchases planned.

• Expect gradual, modest improvement in identical sales through the year, with more visible gains in Q3 and Q4.

• Effective tax rate guidance unchanged at 24–25%.