$ACI · Albertsons Companies, Inc.
Albertsons filed its 10-Q for the quarter ended September 12, 2026, reporting Q2 FY2026 net income of $51.5M ($0.11 diluted EPS) on revenue of $18.895B, down 0.1% YoY. Net income collapsed 69% from $168.5M a year ago, driven by a $42.4M loss on property dispositions and impairments, higher interest expense ($125.0M vs. $105.3M), and gross margin compression to 26.8% from 27.0%.
- Net income fell to $51.5M in Q2 FY2026 from $168.5M in Q2 FY2025, a 69% decline.
- Loss on property dispositions and impairment losses surged to $42.4M vs. $4.4M a year ago.
- Operating income dropped 41% YoY to $174.5M; operating margin compressed to 0.9% from 1.6%.
- Gross margin eroded to 26.8% from 27.0% as cost of sales grew faster than revenue.
- Treasury stock repurchases totaled $398.8M in the first 28 weeks, reducing shares outstanding by ~13% YoY.
Markets closed — no regular-session reaction yet; extended-hours move not captured here. The 69% net income collapse and $42.4M impairment charge are likely to pressure the $6.38B market cap stock when trading resumes.
A 69% net income collapse at a $6.38B market-cap grocer, driven by surging impairment charges and margin erosion, signals deeper operational stress beyond normal quarterly noise.
Albertsons' margin compression mirrors broader grocery-sector pressure from persistent food-cost inflation and competitive pricing. The 26.8% gross margin trails Kroger's recent ~22% but the 0.9% operating margin underscores Albertsons' weaker expense leverage relative to peers.
The $42.4M loss on property dispositions and impairment losses (vs. $4.4M prior year) signals potential store-level underperformance and asset write-down risk. Interest expense rose to $125.0M from $105.3M, increasing leverage pressure on already-thin 0.9% operating margins.
Get filings like this before the market reacts.
Real-time SEC filing alerts, AI summaries, and a free daily digest — plus portfolio tracking that ties filings to your positions.