Kroger Cuts Full-Year Sales Outlook as Shoppers Pull Back on $4 Gas and SNAP Cuts
KR is trading near its 52-week low of $54.15 (8.3% above the low).
Summary
Kroger lowered its full-year identical sales (ex-fuel) guidance to 0.2%-0.8% growth from 1%-2%, citing consumer pressure from $4+ fuel prices and SNAP benefit cuts. Q2 adjusted EPS of $1.09 beat the $1.06 estimate, and sales of $34.621B topped the $34.580B estimate, but the guidance cut signals management expects continued weakness. Specific headwinds include a Cyclospora outbreak (~35 bps drag), lower pharmacy drug prices (~140 bps), and a combined 265 bps drag from IRA, branded-to-generic shifts, Cyclospora, and egg deflation. E-commerce sales rose 20% and retail media revenue increased 24%, showing some offsetting strength. The company reaffirmed adjusted EPS guidance of $5.10-$5.30 and expects the Giant Eagle acquisition to close in 2027. This follows the earlier Reuters report of the guidance cut, but adds detailed Q2 results and operational metrics.
At the time of this announcement, KR was trading at $58.62 on NYSE in the Trade & Services sector, with a market capitalization of approximately $35.9B. The 52-week trading range was $54.15 to $76.58. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Benzinga.