US supermarket chain Kroger has reduced its full-year 2026 guidance for identical sales, excluding fuel, to 0.2%-0.8%, from the 1%-2% range it set on 18 June 2026.
In the second quarter that ended 15 August 2026, sales increased to $34.62bn from $33.94bn in the same quarter a year earlier.
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Identical sales, excluding fuel, rose 0.2%, compared with a 3.4% growth in the same period last year.
Quarterly operating profit rose to $971m from $863m, while net earnings attributable to Kroger increased to $641m from $609m.
Earnings per share (EPS) were $1.05, up from $0.91, and adjusted EPS was $1.09 compared with $1.04.
Gross margin represented 22.4% of sales in the quarter, compared with 22.5% a year earlier.
The company said the decline reflected the combined effect of higher fuel sales, increased shrink, higher transportation costs, and greater value passed on to customers.
Kroger said these factors were 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.
For the year-to-date period, sales reached $80.74bn, up from $79.05bn.
Operating profit increased to $2.37bn from $2.18bn, while net earnings attributable to Kroger rose to $1.54bn from $1.47bn.
Alongside the lower identical sales outlook, the company maintained its other full-year financial targets.
These include 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 CEO Greg Foran said: “Kroger delivered a solid second quarter, with adjusted EPS growth of 5%. I am pleased with the progress we are making. Our teams kept driving value for customers, improving execution in our stores, growing e-commerce profitably and managing costs with discipline. Improving sales momentum remains a top priority.”
