The Kroger Co (KR) investor relations material

Executive summary

• Identical sales excluding fuel grew 1.0% year-over-year, with total sales reaching $46.121 billion, led by eCommerce, fresh, and Our Brands; eCommerce sales grew 19% and reached profitability for the first time.

• Adjusted EPS was $1.58, up 6% year-over-year; GAAP EPS was $1.46.

• Cost savings initiatives delivered results ahead of plan, funding price investments and supporting margin performance.

• Customer traffic and loyal households increased, with share gains against traditional grocery competitors.

• Management is focused on closing execution gaps, improving store consistency, and ramping store openings for market share growth.

Financial highlights

• Total sales were $46.121 billion, up from $45.118 billion year-over-year.

• Adjusted FIFO operating profit was $1.544 billion, up from $1.518 billion; operating profit rose to $1.407 billion.

• Gross margin was 22.7%, down from 23.0% year-over-year, mainly due to higher transportation costs and egg deflation.

• Net earnings attributable to shareholders were $903 million, up from $866 million.

• Dividends declared per share increased to $0.35 from $0.32.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: identical sales without fuel expected to grow 1.0%–2.0%.

• Adjusted FIFO operating profit guidance: $5.0–$5.2 billion; adjusted EPS: $5.10–$5.30.

• Free cash flow projected at $2.7–$2.9 billion; capital expenditures at $3.8–$4.0 billion; tax rate expected at 23%.

• Second quarter identical sales without fuel expected to be in line with Q1; adjusted EPS to match last year, with growth accelerating in the second half.

• More detailed long-term targets to be shared at the October investor update.