The Kroger Co. cut its full-year 2026 identical-sales forecast excluding fuel to 0.2%–0.8% from 1%–2%, citing a sharper-than-expected slowdown in consumer demand. Second-quarter identical sales rose just 0.2%, down from 3.4% a year earlier and below the 0.9% analyst estimate, with a Cyclospora outbreak reducing quarterly identical sales by roughly 35 basis points and Medicare prescription-drug pricing changes creating an approximately 140-basis-point headwind for pharmacy revenue. Kroger maintained its full-year adjusted FIFO operating-profit forecast of $5.0 billion–$5.2 billion and reported adjusted EPS of $1.09, ahead of the $1.06 consensus, while adjusted FIFO operating profit was $1.076 billion and the gross margin rate rose 13 basis points even as the gross-margin percentage slipped to 22.4% from 22.5%. Adjusted e-commerce sales grew 20% and Kroger Precision Marketing profit rose 24%, and CEO Greg Foran is pursuing tighter sourcing, simpler operations and lower prices, with Reuters reporting plans to cut prices across thousands of products to regain shoppers from Walmart, Costco and Aldi. Kroger repurchased $1.0 billion of shares in the second quarter and $1.2 billion year to date, raised its dividend 11% for a 20th consecutive year of increases, and carried a net debt-to-adjusted-EBITDA ratio of 1.91x against a stated target range of 2.30x–2.50x.
Kroger CompanyKroger cut its 2026 identical-sales forecast as consumer demand slowed and Q2 identical sales rose only 0.2%.
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