Updates shares in paragraph 1, adds executive comment from post-earnings call in paragraph 4, analyst comment in paragraph 6

April 15 (Reuters) - Albertsons ACI.N forecast annual profit below estimates on Tuesday as the company offers selective discounts and invests in its loyalty program to drive sales while inflation pressures consumer spending, sending its shares down 3%.

Retailers are tempering their annual expectations due to the overarching effects of U.S. President Donald Trump's sweeping tariffs , which have sparked recession fears and weakened consumer sentiment.

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

"Inflationary pressures have elevated our customers' needs for value," incoming Chief Executive Officer Susan Morris said in a post-earnings call, adding that consumers purchasing through the national food aid program were feeling more pressure.

Fiscal 2025 will be an "investment year", Morris said in a statement, as the company works on store remodeling, offering lower prices and deals with its private label brands as well as loyalty program.

"Competition isn't letting up either, with Walmart, Costco as well as hard discounters making inroads for a cash strapped consumer base," Evercore ISI analysts said in a note.

The company, which is being counter-sued by Kroger KR.N after their botched $25-billion merger, expects an 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. The forecast does not include impact from tariffs, Albertsons said.

Capital expenditure for fiscal 2024 was $1.93 billion as the company completed 127 store remodels and opened 11 new ones.

For the fiscal year ending February 2026, Albertsons expects capital expenditure in the range of $1.7 billion to $1.9 billion.

The Boise, Idaho-headquartered company is also investing in its digital media and advertising business to increase profitability. Retail bellwether Walmart WMT.N has been able to grow operating profits via similar alternate revenue streams.

Excluding items, the Safeway-parent reported fourth-quarter profit per share of 46 cents, beating an estimate of 40 cents. Its quarterly revenue of $18.80 billion was in line with Street expectations.

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

((Juveria.Tabassum@thomsonreuters.com;))