Kroger cuts sales-growth outlook, reaffirms adjusted earnings guidance

The Kroger Co. (NYSE: KR) reported second-quarter FY2026 results on September 11 and lowered its full-year identical-sales growth outlook while reaffirming adjusted earnings guidance. Identical sales without fuel increased 0.2% for the quarter ended August 15, 2026. The new annual sales-growth range is 0.2%–0.8%, down from 1.0%–2.0%.

Identical sales, profit, and EPS

Kroger maintained its full-year adjusted EPS forecast of $5.10–$5.30 and adjusted FIFO operating profit forecast of $5.0 billion–$5.2 billion. CFO David Kennerley attributed the sales-guidance revision to first-half results and the macroeconomic environment. The update leaves Kroger targeting the same adjusted earnings range despite a lower sales-growth outlook.

eCommerce and Precision Marketing

Quarterly total sales reached $34.6 billion, compared with $33.9 billion a year earlier. Excluding fuel, the sale of Vitacost and the exit of certain fulfillment centers, sales increased 0.1%. Adjusted EPS rose to $1.09 from $1.04.

Verified Figures

- Identical sales without fuel: +0.2% in Q2, versus +3.4% a year earlier. - Adjusted EPS: $1.09, versus $1.04 a year earlier. - Total sales: $34.6 billion, versus $33.9 billion a year earlier. - Full-year identical-sales growth guidance: 0.2%–0.8%, lowered from 1.0%–2.0%.

Earnings rise as adjusted operating profit slips

Operating profit was $971 million, up from $863 million a year earlier, and EPS was $1.05, compared with $0.91. Adjusted FIFO operating profit, however, declined to $1.076 billion from $1.091 billion. Gross margin was 22.4%, compared with 22.5%. The adjusted figures should be read separately from the reported operating profit and EPS measures.

Kroger said identical sales without fuel included an unfavorable 138-basis-point impact from the Inflation Reduction Act. Its updated full-year identical-sales guidance includes an approximately 140-basis-point unfavorable impact.

Adjusted eCommerce sales grew 20%, a measure that excludes fulfillment-center exits in non-store markets, the Vitacost sale and the discontinuation of Ship Marketplace. Kroger Precision Marketing profit grew 24%. CEO Greg Foran described the quarter as solid and said improving sales momentum remains a top priority.

What Kroger kept in its outlook

Alongside its reaffirmed adjusted EPS and adjusted FIFO operating profit ranges, Kroger maintained full-year free cash flow guidance of $2.7 billion–$2.9 billion, capital expenditure guidance of $3.8 billion–$4.0 billion and a 23% tax-rate forecast.

The company reported a net total debt-to-adjusted EBITDA ratio of 1.91, compared with 1.63 a year earlier. Its stated target range is 2.30–2.50.

Kroger has scheduled an investor update for October 20, 2026, when it plans to share additional strategic and longer-term targets. The quarterly release was included as Exhibit 99.1 to a Form 8-K covering Items 2.02 and 9.01.

Filing path

The disclosure path is Form 8-K AccNo 0001104659-26-106890 under Items 2.02 and 9.01 with Exhibit 99.1.

Reporting limit on Albertsons

Exhibit 99.1 footnotes reference residual costs tied to the terminated merger with Albertsons Companies, Inc. This coverage does not include Albertsons merger status beyond that exhibit footnote context.