Kroger says cyclosporiasis outbreak cost over $100M in lost sales

Kroger (NYSE:KR) cut its 2026 identical-sales forecast to 0.2%–0.8% from 1%–2%, citing weaker demand. Q2 sales rose 0.2%, below estimates. Factors included consumer pressure, a Cyclospora outbreak, and pharmacy revenue headwinds. EPS beat estimates at $1.09, and the company maintained its operating-profit forecast. Kroger is focusing on cost management and e-commerce growth to offset sales declines.

Kroger reduced its 2026 identical sales growth forecast to 0.2%-0.8% from 1%-2%. Q2 2026 sales rose to $34.62bn, with identical sales up 0.2%. Operating profit increased to $971m, and EPS grew to $1.05. The company cited higher fuel sales and costs but maintained other full-year targets. CEO Greg Foran highlighted progress in customer value and cost management.

Kroger reported Q2 2026 sales of $34.6B, up from $33.9B last year. Digital sales rose 20%, and pharmacy profits increased due to generic medicine sales. Operating profit grew to $971M, while adjusted FIFO operating profit dropped to $1.07B. The company expects full-year core sales growth of 0.2-0.8% and maintains its FIFO operating profit outlook at $5.0-5.2B.

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 reported Q2 2026 adjusted earnings of $1.09 per share, beating estimates, but sales missed expectations. E-commerce sales rose 20%, while identical sales without fuel grew 0.2%. The company cut its sales outlook but maintained profit guidance. Shares have fallen 10.2% over the past year.