Kroger cuts sales outlook as online growth helps support earnings

Kroger reported a $12 billion loss in consumer packaged goods spending over the past year, according to a Numerator report. The company has lost customers to rivals like Amazon, Walmart, and Costco, with lower-income households reducing spending by 5.2%. Kroger's private-label brands saw growth, with sales up 14% in Q2 2026. The company cut its full-year sales outlook, now expecting identical sales growth of 0.2% to 0.8%, down from 1% to 2%.

Kroger lost over $12 billion in consumer spending to Amazon, Walmart, and Costco in the past year, according to Numerator. Spending at Kroger stores fell by $715 million, with 9 million fewer trips. Lower-income households decreased by 700,000, while higher-income households increased by 1 million. Private-label products saw growth, with a $420 million increase in fresh foods. Kroger's Q2 identical sales rose 0.2%, and it lowered its full-year outlook to 0.2%-0.8% growth.

Kroger reduced its full-year identical-store sales growth forecast to below 1%, citing headwinds. Second-quarter sales reached $34.6 billion, up from $33.9 billion a year ago. The Fresh Market won five categories in USA Today's 10BEST Grocery Awards. The U.S. CPI rose 0.4% in August, with food at home up 2.2% year-over-year. Ocado Retail hit 600,000 orders in a week. Tesco banned 114 additives in its own-brand products, promoting healthier diets. Amazon India expanded its operations network with

Evercore ISI Group maintained an 'Outperform' rating for Kroger (KR) but lowered its price target from $75.00 to $70.00. According to GuruFocus, KR is 12.0% undervalued with a GF Value™ of $67.86. The company has a GF Score™ of 77/100, indicating solid performance. Insiders sold $1.76M in shares over the past three months.

Kroger reported Q2 identical sales growth of 0.2%, down from 3.4% YoY, citing Cyclospora outbreak, drug-price changes, and egg deflation. Adjusted earnings of $1.09 per share beat estimates, while revenue of $34.62B was slightly below expectations. E-commerce sales grew 20% YoY, and the company's Giant Eagle acquisition remains on track for 2027.

Kroger (KR) agreed to acquire Giant Eagle for $1.65B, expanding its market presence. The deal includes $1.25B in cash and assumes $400M in liabilities. Kroger expects the acquisition to be accretive to adjusted EPS in the second full year post-close, excluding one-time costs. The transaction is subject to regulatory approval and expected to close in 2027.