Kroger reported a solid performance in its second quarter ended on 15 August, with company sales increasing by 0.2 per cent to $34.6bn compared to $33.9bn in the year prior.
The company’s gross margin decreased to 22.4 per cent from 22.5 per cent for the same time period last year.
The grocery retailer has reduced its full-year guidance for its sales without fuel following a mixed performance in the second quarter.
The grocery retailer’s earnings per share increased to $1.05 from $0.91 in 2025.
Kroger’s operating for the second quarter went up to $971m from $863m last year. The gross margin rate improvement was driven by improvement in e-commerce profitability and media and tariff refunds.
These benefits were offset by higher transportation costs and lower overall prices for customers.
CFO David Kennerley said: “Our second quarter results demonstrate the resiliency of Kroger’s business model and the discipline with which our teams are executing. Adjusted earnings per diluted share grew 5%, driven by cost savings, strong pharmacy and fuel performance, and improvement in the profitability of our e-commerce business.
“We are reaffirming our adjusted FIFO net operating profit and adjusted earnings per diluted share guidance, reflecting our confidence and visibility into the same factors that drove our profitability in the second quarter.”
Kroger’s CEO Greg Foran said: “Kroger delivered a solid second quarter, with adjusted EPS growth of 5 per cent. I am pleased with the progress we are making.
“Our teams kept driving value for customers, improving execution in our stores, growing e-commerce 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.”
The business now expects sales without fuel to increase by between 0.2 per cent to 0.8 per cent and an operating profit within the range of $5bn to $5.2bn.
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