Jan 7 (Reuters) – Albertsons on Wednesday lowered its forecast for annual identical sales and adjusted net income, as stiff competition from larger rivals offering heavier holiday discounts weighed on demand at the supermarket chain.
Ahead of the holiday season, retailers like Walmart, Target and Kroger slashed prices and introduced promotions looking to attract shoppers looking for essentials at the lowest prices, putting pressure on Albertsons.
Inflation and higher prices due to tariffs has also forced lower income consumers to curtail spending on everyday essentials as well as discretionary products.
Albertsons expects annual identical sales growth of between 2.2% and 2.5%, which was lower at the midpoint compared with its earlier target range of 2.2% to 2.75%.
It also expects adjusted net income in the range of $2.08 to $2.16 per Class A common share, compared to the previous range of $2.06 to $2.19 per share.
The company reported quarterly revenue of $19.12 billion, which fell short of analysts’ estimates of $19.17 billion, according to data compiled by LSEG.
(Reporting by Sanskriti Shekhar in Bengaluru; Editing by Maju Samuel and Shailesh Kuber)
