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Albertsons Companies’ $2 Billion Turnaround — Is a Bigger Shake-Up Coming?

Albertsons Companies reported second quarter fiscal 2026 results reflecting a company in the midst of a turnaround effort under new leadership. While the company maintains notable strengths, including strong local banners, a robust pharmacy business, and an evolving e-commerce platform that showed 11% growth, overall sales performance remains challenged. Identical store sales declined 0.8%, pressured by various headwinds such as the Inflation Reduction Act’s impacts on pharmacy sales, a shift from branded to generic prescriptions, a cyclospora outbreak affecting produce, and the cycling of egg deflation. Despite these factors, pharmacy script counts continued to grow, and customer engagement via loyalty programs persisted at a healthy level. Adjusted EBITDA totaled $784 million and adjusted EPS was $0.36 per share, with financial results aligning with management’s revised guidance. Gross margin rate declined slightly, impacted by a higher mix of e-commerce sales and elevated product shrinkage, especially related to the cyclospora issue.