Kroger has issued a modest outlook for 2026 as the US supermarket group seeks to stabilise operations under its new chief executive officer Greg Foran.
The company expects identical sales excluding fuel to grow between 1% and 2% in 2026.
It forecast earnings per share of $5.10 to $5.30 and free cash flow of $2.7bn to $2.9bn, while capital expenditure is projected at $3.8bn to $4bn.
Foran said: “We have the right foundation in place, and I'm focused on making it even stronger by delivering more value to customers, improving the customer experience in stores and online, and driving cost savings and productivity to fund our growth.”
For the fourth quarter, Kroger reported sales of $34.72bn, up from $34.30bn a year earlier.
Sales excluding fuel increased 2.1% year-on-year (YoY) while identical sales without fuel rose 2.4%.
Operating profit rose to $1.24bn from $912m, and earnings per share were $1.35.
Net earnings attributable to the company reached $861m, compared with $634m in the same quarter last year.
Gross margin for the quarter stood at 23.1% of sales, compared with 22.7% a year earlier.
The increase was supported by sourcing improvements, reduced supply chain costs, stronger fuel margins, decreased depreciation and a lower shrink, partly offset by price investments and the impact of pharmacy sales growth.
For fiscal year 2025, Kroger reported total sales of $147.64bn, up from $147.12bn in 2024, including $2bn from Kroger Specialty Pharmacy sales.
Excluding fuel and Kroger Specialty Pharmacy in both periods, sales rose 3% YoY.
Net earnings attributable to the company dropped sharply to $1.01bn, down from $2.66bn a year earlier.
Operating profit for the year declined to $1.89bn from $3.84bn, with earnings per share of $1.54.
Results included $2.5bn in impairment and related charges tied to its automated fulfilment network, representing a $2.91 loss per diluted share.
Gross margin for the full year improved to 22.9% of sales from 22.3% in 2024.
Kroger also completed a previously announced $7.5bn share repurchase programme, comprising a $5bn accelerated share repurchase and $2.5bn in open-market buybacks.
In December 2025, the board authorised an additional $2bn share repurchase programme, which the company expects to complete by the end of FY26.
