Albertsons excludes tariffs in outlook, reflecting uncertainty

Albertsons Cos. provided an annual outlook that excluded the impact of tariffs, pointing to the difficulty of assessing the brewing trade war.

Executives for the retailer didn’t explain on the earnings call why they made that decision. The potential hit from U.S. President Donald Trump’s trade war appears to be limited. The grocery retailer said it domestically sources more than 90% of the products it sells.

The company also hasn’t seen a big change in shopping behavior amid the uncertainty caused by the tariffs. Consumers are indicating that they will keep seeking value and finding ways to tighten their belts, including eating at home more, the retailer said.

“We have not seen a dramatic shift in the recent months,” Chief Operations Officer Susan Morris said on Tuesday’s earnings call. She is set to start serving as chief executive officer in May.

The grocer said it expects adjusted net income of $2.03 to $2.16 per share, below the average of what analysts were projecting. The retailer also forecast identical sales to gain in a range of 1.5% to 2.5%. Wall Street analysts on average expected growth of about 2%.

The company’s stock fell 6.7% at 10:06 a.m. in New York. It had gained about 10% this year through Monday.

Albertsons is monitoring tariffs closely and has established a task force to help it better understand complexities around the levies. While the grocer has less exposure to tariffs, some goods sourced in the U.S. have ingredients imported from tariff-impacted countries, Morris said.

The retailer has also been investing in prices in a “surgical” manner by product categories and markets, Morris added, and will continue to do so.