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.