Albertsons forecasts annual profit below estimates as costs rise

Reuters

Tue, Apr 15, 2025, 4:36 AM 1 min read

(Reuters) -Albertsons forecast annual profit below estimates on Tuesday as the grocery chain echoed other retailers' expectations for the year on caution among American consumers due to still-high inflation and macroeconomic uncertainty.

Albertsons' shares fell nearly 6% in premarket trading. They have risen nearly 8% so far this year.

President Donald Trump's sweeping tariffs have caused retailers to temper their expectations for the year and have given rise to recession fears as consumer sentiment deteriorates.

Although Albertsons has limited exposure to imports from countries such as China, Canada and Mexico, weak spending from consumers could weigh on its sales through the year.

The company is offering some discounts and investing in its loyalty program as demand weakens. Albertsons said it would be spending more on merchandising and investing in its stores to drive sales for the year.

Analysts have also tempered their profit expectations for the year as investments rise.

The company, which is being counter-sued by bigger rival Kroger after their botched $25-billion merger, expects annual profit of $2.03 to $2.16 per share, compared with an estimate of a 0.5% decline to $2.28 per share, according to data compiled by LSEG.

(Reporting by Juveria Tabassum in Bengaluru; Editing by Pooja Desai)