Kroger Reports Modest Earnings Growth Amid Mixed Performance
Kroger (KR) reported quarterly results that showed modest growth in key financial metrics, with total sales rising by 2% to $34.62 billion year-over-year. Same-store sales excluding fuel increased slightly but underperformed compared to the previous quarter's gain of 3.4%. Adjusted net income fell to $667 million from $695 million in the prior year, though per-share earnings rose due to a reduced share count. The company faced several headwinds including higher shrink and transportation costs, which were partially offset by increased fuel sales and strong e-commerce growth. Kroger also noted that its full-year 2026 guidance for identical store sales was trimmed to between 0.2% and 0.8%, citing a drag from the Inflation Reduction Act's impact on pharmacy sales. Despite these challenges, management maintained its adjusted EPS forecast of $5.10 to $5.30 for full-year 2026, indicating at least 5% year-over-year growth. Kroger also reaffirmed its commitment to continuing and increasing quarterly dividends.
Tickers: $KR
Topics: financial_performance retail supermarkets