Albertsons Companies, Inc. reported its financial results for the second quarter of fiscal 2026, which ended September 12, 2026. The company reported net sales and other revenue of $18,894.7 million for the 12-week period, a decrease of 0.1% compared to the prior year period. This decline was driven by a 0.8% decrease in identical sales, partially offset by higher fuel sales.
Despite the sales decrease, the company highlighted several areas of strength. Pharmacy sales continued to grow despite headwinds from the Inflation Reduction Act, and digital sales increased by 11% during the quarter. However, the company reported a net income of $51.5 million, or $0.11 per share, compared to $168.5 million, or $0.30 per share, in the prior year. Adjusted net income was $179.0 million, or $0.36 per share, down from $248.4 million, or $0.44 per share, in the prior year.
Gross margin rate decreased to 26.8% during the quarter compared to 27.0% in the prior year. The decrease was primarily driven by increases in delivery and handling costs related to digital sales growth, as well as higher shrink. Selling and administrative expenses increased to 25.6% of net sales and other revenue, compared to 25.4% in the prior year.
In response to the results, the company announced a comprehensive business review to accelerate improvements in performance and tackle its cost structure. The company is reviewing its customer strategy, cost structure, operating model, and capital allocation priorities. As a result of this review, Albertsons stated it is no longer providing a fiscal 2026 outlook and will not provide an updated outlook until the review is completed during its fourth quarter.
During the first 28 weeks of fiscal 2026, capital expenditures totaled $899.6 million, which included the completion of 38 remodels and the opening of seven new stores. The company also repurchased 26.0 million shares of common stock for a total of $387.6 million during the first 28 weeks of fiscal 2026.
