Kroger Cuts Full-Year Identical-Sales Outlook on Pharmacy and Cyclospora Pressures

Earnings
โดย MarketBeat·US·Read original
Summary · why it matters

Kroger lowered its full-year identical-sales-without-fuel outlook to 0.2% to 0.8% from a previous range of 1% to 2%, citing pharmacy headwinds, a Cyclospora produce outbreak, egg deflation and cautious consumer spending. Second-quarter identical sales excluding fuel rose just 0.2%, while adjusted earnings per diluted share came in at $1.09, up 5% from a year earlier, and adjusted FIFO operating profit was $1.1 billion. Chief Financial Officer David Kennerley said several factors combined to create a 265-basis-point drag on identical sales without fuel during the quarter, including roughly 140 basis points from the Inflation Reduction Act, 60 basis points from customers shifting from branded to generic prescriptions, 35 basis points from Cyclospora in produce and 30 basis points from lingering egg deflation. Despite the weaker sales outlook, Kroger maintained its full-year adjusted FIFO operating-profit guidance of $5 billion to $5.2 billion and adjusted EPS guidance of $5.10 to $5.30, supported by a 13-basis-point increase in its FIFO gross-margin rate excluding rent, depreciation, amortization and fuel. E-commerce, retail media and private-label products remained growth drivers, with adjusted e-commerce sales up 20%, retail media revenue up 24% and Private Selection sales up more than 14%. Kroger repurchased about $1.2 billion of shares in the first half under its existing $2 billion authorization and reiterated that it expects its planned acquisition of Giant Eagle to close in 2027, subject to regulatory review.

Impact on stocks 1

Consumer Staples▲ · 1 stocks
Kroger Company
KR
± MixedCapitalDemandrelevance

Kroger maintained its full-year adjusted FIFO operating-profit and EPS guidance and repurchased about $1.2 billion of shares under its $2 billion authorization.

Off-coverage companies 1

Giant EaglePrivate± Mixed
Regulationrelevance

Kroger reiterated that its planned acquisition of Giant Eagle is expected to close in 2027, subject to regulatory review; no standalone impact on Giant Eagle is described.

© 2026 MarketDXNews