Kroger cut its full-year identical sales growth guidance to a range of 0.2% to 0.8%, down from an earlier 1% to 2%, after second-quarter identical sales growth slowed to 0.2% from 3.4% a year earlier and missed analyst estimates of 0.9%. The grocery firm's operating margin stayed flat year over year at 2.8%, though its high-margin marketing business KPM grew profit by 24% annually. Walmart, by contrast, grew comparable sales at 2.6% in its second quarter, its slowest pace in nearly five years and below analyst estimates of 3.7%, while management flagged an expected $10 billion cost headwind from higher fuel prices in fiscal year 2027. Walmart's advertising revenue rose 38%, with Walmart Connect up 43%. Walmart trades at a forward P/E of 37 versus Kroger's 11.96, and short interest stands at 1.9% of Walmart's float against 4.69% for Kroger.
Kroger CompanyKroger cut full-year identical sales guidance after Q2 identical sales growth slowed to 0.2% and missed estimates, signaling weak end-customer demand.
Walmart Inc.Walmart comparable sales grew 2.6% but at the slowest pace in nearly five years and below estimates, while advertising revenue rose 38%.
