Kroger reported second-quarter 2026 adjusted earnings of $1.09 per diluted share, up 5% from a year earlier, while identical sales without fuel grew just 0.2% and the company lowered its full-year identical sales without fuel guidance to 0.2% to 0.8% from an initial range of 1% to 2%. Adjusted FIFO operating profit was $1.1 billion in the quarter, and the company maintained its full-year adjusted FIFO operating profit guidance at $5 billion to $5.2 billion and its full-year adjusted EPS guidance at $5.10 to $5.30. E-commerce sales grew 20%, marking a second consecutive quarter of profitable e-commerce growth, and retail media revenue grew 24%, its best performance since 2021, with media monetization up 88 basis points. Identical sales without fuel absorbed a combined 265 basis point drag, comprising roughly 140 basis points from the Inflation Reduction Act, 60 basis points from the brand-to-generic shift, 30 basis points from egg deflation, and 35 basis points from the Cyclospora outbreak in produce. Kroger repurchased approximately $1.2 billion of shares through the first half under its existing $2 billion authorization, completed 12 major store projects in the quarter, and ended the period with a net debt to adjusted EBITDA ratio of 1.91 against a target range of 2.3 to 2.5.
Kroger CompanyAdjusted EPS rose 5% to $1.09 and buybacks continued, but full-year identical sales guidance was cut to 0.2%-0.8% from 1%-2%.
