KR Stock Declines After Company Cuts Identical Sales Forecast For 2026 A Look At Some Key Highlights

• Second-quarter adjusted EPS and revenue surpassed Street expectations, according to Fiscal AI data.
• Identical sales excluding fuel rose 0.2%, down from 3.4% a year earlier, with the company citing a roughly 140-basis-point IRA headwind.
• Kroger repurchased $1 billion of shares in Q2, taking year-to-date buybacks to $1.2 billion.

Kroger (KR) shares fell nearly 4% in Friday's pre-market after the company slashed its full-year identical-sales forecast on Friday, while keeping its adjusted earnings outlook unchanged. 

The company now expects identical sales, excluding fuel, to increase by 0.2% to 0.8% in fiscal 2026, down from its previous forecast range of 1% to 2%. Kroger maintained its full-year adjusted earnings per share (EPS) guidance in the range of $5.10 to $5.30.

The sales outlook revision includes an approximately 140-basis-point headwind from the Inflation Reduction Act. CFO David Kennerley said the company was updating its sales guidance based on its first-half results and the macro environment.

The results came after analysts had flagged risks ahead of the earnings report. Citi analyst Paul Lejuez lowered Kroger's price target to $57 from $61 and placed the stock on a“downside 30-day catalyst watch.” 

Deutsche Bank also lowered its price target to $68 from $79 while maintaining a Buy rating as part of its second-quarter earnings preview.

KR's Q2 Results Highlights

Kroger reported second-quarter sales of $34.62 billion, beating the $34.53 billion estimate according to Fiscal ai. Adjusted EPS came in at $1.09, surpassing the consensus of $1.05 per share.

Kroger's identical sales excluding fuel increased just 0.2% during the quarter, compared with 3.4% a year earlier. 

Kennerley highlighted that adjusted EPS increased 5% year-over-year, driven by cost savings, strong performance in pharmacy and fuel, and improved profitability in the eCommerce business.

The company repurchased $1 billion of its shares during the quarter, bringing year-to-date repurchases to $1.2 billion. 

What Retail Thinks About KR Stock 

Retail sentiment around KR stock was“extremely bullish” on Stocktwits amid high message volume.

KR shares have dropped about 10% year-to-date.

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