Kroger, the U.S. supermarket chain, has lowered its same-store sales forecast for 2026 to 0.2%-0.8%. This reduction comes from the range of 1%-2% announced on June 18, 2026.
Financial Performance in the Second Quarter
In the second quarter ending August 15, 2026, the company's sales rose to $34.62 billion, up from $33.94 billion in the same period last year, indicating growth. Additionally, same-store sales excluding fuel increased by 0.2%, which shows a significant decline compared to the 3.4% growth in the same period last year.
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Profit and Costs Increase
Operating profit for the period increased to $971 million, up from $863 million last year. Additionally, net profit attributable to Kroger reached $641 million, exceeding last year's $609 million. Earnings per share (EPS) also improved from $0.91 to $1.05.
However, the gross margin decreased to 22.4% of sales during this period, down from 22.5% last year. The company attributed this decline to a combination of increased fuel sales, higher shrink, increased transportation costs, and greater value transfer to customers.
Kroger stated that these factors were partially offset by stronger profitability in e-commerce, media performance, favorable pharmacy mix, supply chain initiatives, tariff refunds, and reduced last in, first out costs.
Remaining Financial Goals
This year, sales reached $80.74 billion, up from $79.05 billion last year. Operating profit increased to $2.37 billion, improving from $2.18 billion last year. Additionally, net profit attributable to Kroger reached $1.54 billion, exceeding last year's $1.47 billion.
Despite the reduction in same-store sales forecast, the company has maintained its other financial targets for the year. These targets include operating profit based on the first in, first out method between $5 billion and $5.2 billion, EPS between $5.1 and $5.3, free cash flow between $2.7 billion and $2.9 billion, and capital expenditures between $3.8 billion and $4 billion.
Greg Foran, CEO of Kroger, stated: "Kroger performed well in the second quarter and experienced a 5% adjusted EPS growth. I am pleased with the progress we are making. Our teams continue to create value for customers, prioritize improving execution in stores, growing e-commerce profitability, and managing costs with discipline. Improving sales momentum remains a top priority."
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