NEW YORK, June 18, 2026, 09:09 (EDT)
- Kroger stuck to its 2026 outlook after first-quarter sales topped forecasts, though adjusted earnings came in a cent shy of estimates.
- The grocer’s shares dropped in premarket trading, with margin pressure coming from price investments, higher transport costs and changes in fuel mix.
- The report offers an early look at CEO Greg Foran’s effort to keep shoppers from switching to Walmart and Costco by cutting prices.
Kroger shares looked ready to start down Thursday. The grocer stuck to its full-year view and posted an adjusted profit that missed by a small margin. That took the shine off quarterly sales, which came in ahead as shoppers continue to look for cheaper food.
Timing is key here. Kroger reports just before the last normal U.S. trading day ahead of the Juneteenth holiday. The NYSE opens at 9:30 a.m. ET, and U.S. markets stay shut on June 19.
New CEO Greg Foran faces questions from investors about cutting prices and holding margins. The quarter matters, but Kroger has to go after share from Walmart and Costco as shoppers look harder at prices and trade down.
Kroger’s first-quarter sales hit $46.1 billion, up from $45.1 billion a year ago. Identical sales without fuel added 1.0%. Adjusted earnings per share climbed to $1.58, up from $1.49.
Kroger missed on profit, coming in just shy of forecasts as LSEG data from Reuters had analysts looking for $1.59 per share in adjusted earnings. Revenue, though, was ahead of the $45.47 billion mark. The stock dropped roughly 3% in choppy premarket action.
Kroger shares slid 3.6% to end Wednesday at $61.82, lagging the S&P 500’s 1.21% loss and the Dow’s 0.98% fall. Walmart and Costco also dropped but didn’t fall as much.
Foran, in charge since earlier this year, struck a careful note. “There is more work to do,” he said. The company is aiming to be “America’s best grocer.” ir.kroger.com
Kroger delivered a mixed quarter. Sales beat forecasts with help from steady demand, and adjusted e-commerce sales jumped 19%. But gross margin dropped to 22.7% from 23.0%. Kroger cited higher fuel sales and transport costs, egg deflation and planned price moves as headwinds. It said those were partly offset by pharmacy mix, e-commerce profits and sourcing gains.
Kroger stuck with its 2026 targets, still seeing identical sales growth excluding fuel at 1.0% to 2.0% and adjusted EPS between $5.10 and $5.30. The company’s free cash flow outlook remains $2.7 billion to $2.9 billion, with management saying that leaves room for stock buybacks and store investment.
The risk for Kroger is clear. If price cuts fail to draw in shoppers, Kroger may be left with slimmer margins and no meaningful gain in sales, especially with food inflation, fuel, or transport costs still high. The company itself lists labor negotiations, rivals, tariffs, cautious customers, and lawsuits from the ended Albertsons deal as potential threats to its strategy.
Kroger is trading more like a company in transition than a defensive grocer right now. The sales numbers show shoppers are sticking around. Shares, though, are telling investors are still looking to see if Foran’s value strategy will deliver.
