Kroger Reports Second Quarter 2026 Results and Updates Guidance for 2026

Kroger Reports Second Quarter 2026 Results and Updates Guidance for 2026

Second Quarter Highlights Identical Sales without fuel increased 0.2% Operating Profit of $971 million; EPS of $1.05 Adjusted FIFO Operating Profit of $1,076 million and Adjusted EPS of $1.09 Adjusted eCommerce sales grew 20% 1 ; Kroger Precision Marketing profit grew 24% CINCINNATI , Sept. 11, 2026 /PRNewswire/ -- The Kroger Co. (NYSE: KR ) today reported results for its second quarter ended August 15, 2026. Kroger reaffirmed its full-year adjusted net earnings per diluted share guidance, lowered its full-year 2026 identical sales without fuel guidance, and shared progress on key priorities. 1 Adjusted eCommerce sales exclude the effect of fulfillment center exits in markets where Kroger does not operate stores, the sale of Vitacost, and the discontinuation of Ship Marketplace. Comments from CEO Greg Foran "Kroger delivered a solid second quarter, with adjusted EPS growth of 5 percent. I am pleased with the progress we are making. Our teams kept driving value for customers, improving execution in our stores, growing eCommerce profitably and managing costs with discipline. Improving sales momentum remains a top priority. While there is more work to do, I am confident in our plan to become America's favorite grocer." Second Quarter Financial Results 2Q26 ($ in millions; except EPS) 2Q25 ($ in millions; except EPS) ID Sales (1) (Table 4) 0.2 % 3.4 % Earnings Per Share $1.05 $0.91 Adjusted EPS (Table 6) $1.09 $1.04 Operating Profit $971 $863 Adjusted FIFO Operating Profit (Table 7) $1,076 $1,091 Gross Margin (Table 8) 22.4 % 22.5 % FIFO Gross Margin Rate (2) Increased 13 basis points OG&A Rate (3) Increased 33 basis points (1) Without fuel and includes an unfavorable 138 basis point impact from the Inflation Reduction Act. (2) Without rent, depreciation and amortization, fuel and adjustment items, if applicable. (3) Without fuel and adjustment items, if applicable. Total company sales were $34.6 billion in the second quarter compared to $33.9 billion for the same period last year. Excluding fuel, the sale of Vitacost and the exit of certain fulfillment centers, sales increased 0.1% compared to the same period last year. Gross margin was 22.4% of sales for the second quarter compared to 22.5% for the same period last year. The decrease in rate was primarily driven by the mix effect of higher fuel sales, higher shrink, higher transportation costs and greater value delivered for customers. These pressures were partially offset by improvement in eCommerce profitability and media, favorable pharmacy mix, sourcing initiatives, tariff refunds, the decreased LIFO charge and depreciation and amortization. The FIFO gross margin rate, excluding rent, depreciation and amortization, and fuel increased 13 basis points compared to the same period last year. The improvement was primarily driven by improvement in eCommerce profitability and media, favorable pharmacy mix, sourcing initiatives and tariff refunds. These benefits were partially offset by higher shrink, higher transportation costs and greater value delivered for customers. The LIFO charge for the quarter was $39 million, compared to a LIFO charge of $62 million for the same period last year. The Operating, General and Administrative rate, excluding fuel and adjustment items, increased 33 basis points compared to the same period last year. The increase was primarily attributable to planned investments in associate wages, increased health care costs, and sales deleverage, partially offset by lower incentive plan costs and ongoing productivity initiatives. Capital Allocation Kroger expects to continue to generate strong free cash flow and remains committed to investing in the business to drive long-term sustainable net earnings growth, as well as maintaining its current investment grade debt rating. The Company expects to continue to pay its quarterly dividend and expects this to increase over time, subject to board approval. Earlier this quarter, Kroger increased its dividend by 11%, ma...