Kroger has revised its full-year sales growth forecast for identical stores, excluding fuel, to a range of 0.2% to 0.8%. This is a significant reduction from the previous guidance of 1.0% to 2.0% issued in June. The adjustment follows a second quarter where identical sales growth, excluding fuel, slowed to 0.2%, compared to 3.4% in the same period of 2025.
CEO Greg Foran attributed the performance to a challenging macroeconomic environment, noting that consumers are prioritizing essential purchases. Factors such as reduced SNAP benefits, rising fuel costs, and lower consumer confidence are impacting household budgets. The company reported that unit growth has decelerated since the beginning of the year.
CFO David Kennerley detailed specific headwinds that impacted second-quarter results by a total of 265 basis points. These include a 140-basis-point impact from the Inflation Reduction Act, 60 basis points from a shift to generic drugs, 35 basis points due to a cyclospora outbreak, and 30 basis points from egg deflation.
The company maintains a cautious outlook for the third quarter, citing the lingering effects of the cyclospora outbreak. Kroger operates across the US under various banners, including Fred Meyer, Ralphs, and Harris Teeter. Management expects these identified pressures to persist through the remainder of the fiscal year.
