Investing.com -- On Tuesday, Albertsons Companies, Inc. (NYSE: ACI) reported second quarter fiscal 2026 results that exceeded earnings expectations but fell short on sales performance.

Shares of the grocery retailer edged down 1.12% in pre-market trading following the announcement, as the company withdrew its full-year guidance to conduct a comprehensive business review.

The company posted adjusted earnings per share of $0.36, beating the analyst consensus of $0.33 by $0.03. Revenue came in at $18.89 billion, matching analyst estimates but declining 0.1% from $18.92 billion in the prior-year period. Identical sales decreased 0.8% during the quarter, though digital sales grew 11% and pharmacy sales continued to expand despite headwinds from the Inflation Reduction Act.

The company announced it is suspending its fiscal 2026 outlook while conducting a comprehensive business review expected to conclude during the fourth quarter. The company plans to provide a refreshed financial framework alongside its turnaround plan by its fourth quarter earnings call and host an investor day in Spring 2027.

"Although our second quarter performance was in-line with the expectations in our revised outlook, our results do not reflect the potential of the Company," said Susan Morris, Chief Executive Officer. "We are launching a comprehensive business review to speed up improvements in Albertsons’ performance and tackle even harder a cost structure we can no longer afford."

Net income totaled $52 million, or $0.11 per share, compared to $169 million, or $0.30 per share, in the year-ago quarter. Adjusted net income was $179 million versus $248 million in the prior year. Adjusted EBITDA declined to $784 million from $848 million YoY.

Gross margin rate decreased to 26.8% from 27.0%, primarily driven by higher delivery and handling costs related to digital sales growth and increased shrink. Selling and administrative expenses rose to 25.6% of revenue from 25.4%, reflecting sales deleveraging from lower identical sales.

The company is reviewing its customer strategy, cost structure, operating model, portfolio of banners, markets, assets and capital allocation priorities as part of its turnaround efforts.

Original Article