Ahold Delhaize (OTC:ADRNY) reaffirmed its full-year 2026 guidance after reporting resilient second-quarter results Wednesday, with continued market share gains, strong online growth and disciplined cost management helping offset a challenging consumer environment in the United States.
The international grocery retailer, whose U.S. banners include Food Lion, Stop & Shop, Giant Food, Giant Food Stores, and Hannaford, reported second-quarter net sales of €23.2 billion ($26.7 billion), up 1.9% at constant exchange rates. Underlying operating income totaled €906 million, while diluted underlying earnings per share declined 1.4% year over year to €0.63 ($0.73).
Chief Executive Officer Frans Muller said the company continued to gain market share across its major brands despite persistent economic uncertainty.
“Our resilient performance in the second quarter reflects the strength of our local brands, disciplined execution and continued investments in customer value,” Muller said in a statement.
The retailer maintained its 2026 outlook, continuing to project an underlying operating margin of about 4%, mid- to high-single-digit growth in underlying earnings per share at constant exchange rates, free cash flow of at least €2.3 billion ($2.66 billion) and approximately €2.7 billion ($3.12 billion) in gross capital expenditures. The company also noted that its 53-week fiscal year is expected to provide a modest lift to annual sales and earnings.
Performance varied by region.
In the United States, comparable sales excluding gasoline increased 0.8%, but results were pressured by reduced Supplemental Nutrition Assistance Program (SNAP) benefits, pharmacy pricing changes related to the Inflation Reduction Act and lower egg prices. Combined, those factors reduced comparable sales growth by approximately 1.6 percentage points during the quarter, the company said.
European operations outperformed, with comparable sales rising 1.7% excluding calendar effects as the company benefited from continued operational improvements and integration of acquired businesses.
Digital commerce remained a bright spot. Companywide online sales increased 8.6% at constant exchange rates, led by 14.5% growth in the United States, marking the ninth consecutive quarter of double-digit online growth for the company’s U.S. operations.
Muller told Reuters that value remains the primary concern for shoppers as inflation and economic uncertainty continue to shape purchasing decisions.
“Customers are looking for value, customers are looking for pricing and promo,” he said.
The retailer continues to invest heavily in its U.S. business, including a previously announced $1 billion initiative running through 2028 to improve price competitiveness while pursuing productivity gains throughout its operations. At the same time, management said it has increased the frequency of supplier negotiations to respond more quickly to volatile transportation, energy and commodity costs.
Shares of Ahold Delhaize traded modestly higher following the earnings release as investors responded favorably to results that exceeded analyst expectations for underlying operating profit while preserving the company’s full-year outlook.