WS Investor
11 Sep 2026, 14:00
Kroger Stock Rises 2.7% as Investors Look Past Lower Sales Outlook
Kroger shares rose 2.7% after the market opened Friday, reversing an earlier premarket decline as investors weighed solid second-quarter earnings and improving digital profitability against a weaker full-year sales outlook.
Q2 sales increased to $34.6 billion from $33.9 billion a year earlier, while identical sales excluding fuel grew 0.2%. Adjusted EPS rose 5% to $1.09, although adjusted FIFO operating profit slipped slightly to $1.08 billion from $1.09 billion.
Digital operations were a bright spot. Adjusted eCommerce sales grew 20%, while Kroger Precision Marketing profit increased 24%. Gross margin edged down to 22.4% from 22.5%, pressured by higher shrink, transportation costs and investments in customer value.
Kroger lowered its FY2026 identical-sales growth forecast excluding fuel to 0.2%–0.8% from 1.0%–2.0%. However, the company maintained its adjusted EPS forecast of $5.10–$5.30, adjusted FIFO operating profit guidance of $5.0–$5.2 billion and free cash flow outlook of $2.7–$2.9 billion.
The positive market reaction suggests investors are focusing on Kroger’s resilient earnings, digital growth and unchanged profit guidance despite softer expectations for comparable sales.
Kroger shares rose 2.7% after the market opened Friday, reversing an earlier premarket decline as investors weighed solid second-quarter earnings and improving digital profitability against a weaker full-year sales outlook.
Q2 sales increased to $34.6 billion from $33.9 billion a year earlier, while identical sales excluding fuel grew 0.2%. Adjusted EPS rose 5% to $1.09, although adjusted FIFO operating profit slipped slightly to $1.08 billion from $1.09 billion.
Digital operations were a bright spot. Adjusted eCommerce sales grew 20%, while Kroger Precision Marketing profit increased 24%. Gross margin edged down to 22.4% from 22.5%, pressured by higher shrink, transportation costs and investments in customer value.
Kroger lowered its FY2026 identical-sales growth forecast excluding fuel to 0.2%–0.8% from 1.0%–2.0%. However, the company maintained its adjusted EPS forecast of $5.10–$5.30, adjusted FIFO operating profit guidance of $5.0–$5.2 billion and free cash flow outlook of $2.7–$2.9 billion.
The positive market reaction suggests investors are focusing on Kroger’s resilient earnings, digital growth and unchanged profit guidance despite softer expectations for comparable sales.
