10:48 AM EDT, 07/01/2025 (MT Newswires) -- Albertsons' ( ACI ) fiscal Q1 margins could face pressure from pharmacy mix, reinvestment and e-commerce growth, while topline is expected to be steady, RBC Capital Markets said in a Tuesday note.

RBC estimates a year-on-year contraction of around 25 basis points in fiscal Q1 gross margin and a 7% decline in adjusted earnings before interest, taxes, depreciation and amortization to $1.10 billion. The quarter's identical sales, meanwhile, are projected to increase by 2.2%, according to the note.

"Our state-weighted scanner analysis plus the Kroger (KR) read through give us confidence that top-line has held steady," said RBC.

RBC has an outperform rating on Albertsons ( ACI ), with a $23 price target.

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