Albertsons Companies, Inc. (ACI) saw its stock price plummet 8.51% on Tuesday after the grocery chain released its fourth-quarter results and provided a disappointing profit forecast for fiscal 2025. The significant drop came despite the company reporting better-than-expected earnings for the fourth quarter.

For the fourth quarter ended February 22, 2025, Albertsons reported adjusted earnings per share of $0.46, surpassing analysts' expectations of $0.41. Revenue for the quarter came in at $18.8 billion, slightly above the estimated $18.64 billion. Same-store sales increased by 2.3%, outpacing the expected 1.8% growth.

However, investors were more focused on the company's outlook for fiscal 2025. Albertsons forecasts annual profit between $2.03 and $2.16 per share, falling well short of analysts' estimates of $2.28 per share. The company also projects identical sales growth of 1.5% to 2.5% for the fiscal year, indicating a challenging environment ahead. Incoming CEO Susan Morris described fiscal 2025 as an "investment year," with plans to focus on store remodeling, offering lower prices, and enhancing the company's loyalty program to drive future growth. The conservative forecast, combined with concerns about rising costs and inflationary pressures affecting consumer spending, led to the sharp sell-off in Albertsons' stock.