Kroger lowered its full-year identical sales guidance to 0.2%-0.8%, citing first-half results and anticipated Inflation Reduction Act headwinds to pharmacy sales in the fourth quarter. The company said the pharmacy headwind reached 140 basis points in the quarter and is expected to accelerate to approximately 150 basis points in Q4 as new high-cost drugs are added to formularies, though management expects no impact on profit. A Cyclospora outbreak in the final period cost roughly 35 basis points in total company identical sales without fuel, part of a 265-basis-point total headwind that also included pharmacy impacts and egg deflation. Kroger reported its second consecutive quarter of profitable e-commerce growth, with adjusted e-commerce sales up 20% and retail media up 24%, while private label penetration rose 50 basis points. The company resumed share repurchases, totaling approximately $1.2 billion in the first half, and plans to complete the remaining $800 million authorization by year-end, with the planned acquisition of Giant Eagle still on track for a 2027 close.
Kroger CompanyKroger resumed share repurchases totaling ~$1.2B in H1 and plans to complete the remaining $800M authorization by year-end.
NVIDIA CorporationKroger's planned acquisition of Giant Eagle is still on track for a 2027 close, but no new terms or impact are detailed.
