Albertsons swings to loss fueled by $774 million opioid settlement
Albertsons Companies reported a fourth-quarter loss on the heels of an opioid settlement. It is one of the last major retail chains to reach a deal.
The grocer said it reached a $774 million settlement to resolve “substantially” all of the opioid-related claims brought against the company by state, local and tribal government entities across the nation. Albertsons noted that the settlement is not an admission of wrongdoing or liability.
“This settlement framework marks a significant step toward resolving opioid-related litigation, and Albertsons Cos. believes the settlement framework is in the best interest of all parties,” the company stated. “For years, Albertsons Cos. has invested in strong pharmacy practices designed to promote the safe and appropriate use of prescription medications.”
Albertsons’ settlement comes several years after other prominent retailers, including Walmart, CVS Health Corp. and Walgreens, all struck deals to settle opioid-related claims.
Fourth Quarter
Albertsons reported a net loss of $480.8 million, or a loss of $0.94 per share, for the quarter ended Feb. 28, compared to net income of $171.8 million or $0.29 per share net of tax, or $1.18 per share, in the year-ago quarter. The net loss included the $599.8 million charge, net of tax, or $1.18 per share, related to the company’s opioid settlement.
Net sales and other revenue was $20.3 billion compared to $18.8 billion during the year-ago period. (The increase included approximately $1.4 billion incremental net sales related to the extra week in the fourth quarter of fiscal 2025.)
Identical sales increased 0.7%, primarily driven by pharmacy sales, which were impacted more than expected by the pricing headwinds related to the Inflation Reduction Act ("IRA") and a mix shift within the broader pharmacy industry. Digital sales rose 16%.
Increases in net sales and other revenue were partially offset by a net reduction in sales driven by store closures since the fourth quarter of fiscal 2024.
As of Feb. 28, Albertsons operated 2,244 retail food and drug stores with 1,713 in-store pharmacies and 405 associated fuel centers. The company operates stores across 35 states and the District of Columbia under a 22 banners that include Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme, Tom Thumb, Randalls, United Supermarkets and more.
