Kroger, a major US supermarket chain, has lowered its full-year 2026 guidance for identical sales (excluding fuel) to a range of 0.2% to 0.8%, down from the previous 1% to 2% projection established on June 18, 2026.
During the second quarter ending August 15, 2026, the company reported sales of $34.62 billion, up from $33.94 billion in the comparable quarter of the previous year.
Identical sales, excluding fuel, grew by 0.2%, a significant slowdown compared to the 3.4% growth recorded in the same period last year.
Quarterly operating profit climbed to $971 million from $863 million, while net earnings attributable to Kroger rose to $641 million, up from $609 million.
Earnings per share (EPS) reached $1.05, an increase from $0.91, while adjusted EPS rose to $1.09 compared to $1.04 in the prior-year quarter.
The gross margin stood at 22.4% of sales for the quarter, slightly down from 22.5% a year earlier.
The company attributed the margin decline to a combination of higher fuel sales, increased shrinkage, elevated transportation costs, and greater value passed on to customers.
Kroger noted that these headwinds were partially offset by stronger e-commerce profitability, media performance, a favorable pharmacy mix, sourcing initiatives, tariff refunds, and a smaller last-in, first-out (LIFO) charge.
For the year-to-date period, sales reached $80.74 billion, up from $79.05 billion in the previous year.
Operating profit increased to $2.37 billion from $2.18 billion, while net earnings attributable to Kroger rose to $1.54 billion, up from $1.47 billion.
Alongside the revised identical sales outlook, the company has maintained its other full-year financial targets.
These targets include first-in, first-out (FIFO) operating profit of $5 billion to $5.2 billion, EPS of $5.10 to $5.30, free cash flow of $2.7 billion to $2.9 billion, capital expenditure of $3.8 billion to $4 billion, and a tax rate of 23%.
Kroger CEO Greg Foran commented, “Kroger delivered a solid second quarter, with adjusted EPS growth of 5%. I am pleased with the progress we are making. Our teams kept driving value for customers, improving execution in our stores, growing e-commerce profitably, and managing costs with discipline. Improving sales momentum remains a top priority.”
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