(Reuters) -Albertsons lowered the upper end of its annual sales forecast after missing third-quarter revenue expectations on Wednesday, as intense competition from bigger retailers such as Walmart and Kroger offering heavy discounts hurt demand.
Heading into the holiday season, retailers across the country had introduced early deals starting in October, intensifying competition in the industry to attract customers seeking to buy essentials at the lowest prices.
Analysts and investors on Wednesday’s call are keen to know the details of Albertsons’ growth plans following the merger fallout with Kroger, and how it aims to rebuild its business in a highly competitive grocery market.
Albertsons, which has sued Kroger after the grocer terminated their $25 billion deal, now expects annual 2024 identical sales growth in the range of 1.8% to 2.0%, compared to a prior forecast of 1.8% to 2.2%.
It saw quarterly net sales rise to $18.78 billion, from $18.56 billion a year earlier. Analysts on average were expecting $18.82 billion, according to data compiled by LSEG.
Shares of the company, which is hosting its first post-earnings call in more than two years, rose 3% in premarket trading after it raised annual adjusted profit forecast.
It now expects fiscal 2024 adjusted profit of $2.25 to $2.31 per share, compared to the previously forecast $2.20 to $2.30.
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Pooja Desai)
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