Albertsons Sinks as Rising Inflation Makes Groceries Much More Expensive
Inflation is taking its toll on Albertsons (NYSE: ACI), despite the supermarket chain reporting fiscal 2021 third-quarter earnings with sales and profits that beat Wall Street estimates, while management raised full-year guidance.
Unfortunately, the root reasons it could post such strong numbers masked underlying woes it and other supermarkets face. Higher costs due to rising prices, supply chain challenges, and increased labor costs are conspiring to undermine its business, and grocery stores already operate on very thin margins.
Image source: Getty Images.
Source Fool.com
