Kroger has trimmed its full-year 2026 guidance for identical sales excluding fuel to 0.2%-0.8%, down from the 1%-2% range it set on 18 June 2026, even as second-quarter profit improved. In the quarter ended 15 August 2026, sales rose to $34.62bn from $33.94bn a year earlier, while identical sales excluding fuel grew just 0.2% against 3.4% growth in the same period last year. Quarterly operating profit climbed to $971m from $863m and net earnings attributable to Kroger rose to $641m from $609m, with earnings per share of $1.05, up from $0.91, and adjusted EPS of $1.09 compared with $1.04. Gross margin was 22.4% of sales versus 22.5% a year earlier, a decline Kroger attributed to higher fuel sales, increased shrink, higher transportation costs and greater value passed to customers, partly offset by stronger e-commerce profitability and media performance, a favourable pharmacy mix, sourcing initiatives, tariff refunds and a smaller last-in, first-out charge. Alongside the lower identical sales outlook, Kroger maintained its other full-year targets, including first-in, first-out operating profit of $5bn to $5.2bn, EPS of $5.1 to $5.3, free cash flow of $2.7bn to $2.9bn, capital expenditure of $3.8bn to $4bn and a tax rate of 23%.
Kroger CompanySecond-quarter operating profit rose to $971m from $863m and EPS climbed to $1.05 from $0.91, with other full-year targets maintained.
