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Kroger posts mixed Q2 with weak sales but strong earnings and margin gains, maintaining a Buy rating.

Company Fundamentals
11 Sep 2026
Seeking Alpha
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Bullish
Kroger posts mixed Q2 with weak sales but strong earnings and margin gains, maintaining a Buy rating.

Kroger reported a mixed second quarter with weak identical store sales but solid earnings per share (EPS) and margin improvements. Operational strengths in cost control, e-commerce, and retail media helped increase operating income by 12.5% despite challenges in top-line growth. The company projects full-year EPS between $5.10 and $5.30 and modest identical store sales growth of 0.2% to 0.8%, reflecting ongoing headwinds. Margin expansion and share buybacks support an expected 7% EPS growth, justifying Kroger's current low valuation and a Buy rating with a strong margin of safety at 10.9 times forward earnings.

More News (KR)

Kroger Q2 EPS beats estimates but revenue slightly misses; sales outlook lowered due to economic challenges

Kroger Q2 EPS beats estimates but revenue slightly misses; sales outlook lowered due to economic challenges

Kroger reported Q2 earnings with an EPS of $1.09, beating analyst expectations of $1.06 and showing 5% growth. Quarterly revenue was $34.62 billion, just below the $34.64 billion consensus but up from last year. The company lowered its full-year same...

Company Fundamentals
Neutral
12 hours ago
Kroger cuts 2026 sales growth forecast amid consumer shift to essentials and economic pressures

Kroger cuts 2026 sales growth forecast amid consumer shift to essentials and economic pressures

Kroger lowered its 2026 full-year sales growth outlook for identical sales excluding fuel to 0.2%-0.8%, down from a previous 1.0%-2.0% forecast. This adjustment follows a weak second quarter where sales growth slowed to 0.2%, impacted by factors like...

Company Fundamentals
Bearish
12 hours ago
Kroger raises profit outlook after Q2 earnings beat estimates despite lower sales growth forecast

Kroger raises profit outlook after Q2 earnings beat estimates despite lower sales growth forecast

Kroger reported better-than-expected Q2 earnings with adjusted EPS of $1.09, beating estimates and up 5% year-over-year. Revenue was $34.6 billion, slightly above forecasts, while adjusted operating profit reached $1.08 billion. Despite trimming its ...

Company Fundamentals
Bullish
14 hours ago
Kroger posts 5% adjusted EPS growth in Q2, lowers full-year sales guidance amid inflation impact

Kroger posts 5% adjusted EPS growth in Q2, lowers full-year sales guidance amid inflation impact

Kroger reported a 5% increase in adjusted earnings per share to $1.09 for Q2 2026, driven by cost savings and profitable eCommerce growth. Despite a slight 0.2% rise in identical sales excluding fuel, the company lowered its full-year sales guidance ...

Company Fundamentals
Bullish
17 hours ago
Kroger faces retail challenges with cautious spending ahead of earnings report on Sept 11, 2026.

Kroger faces retail challenges with cautious spending ahead of earnings report on Sept 11, 2026.

Kroger is set to release its earnings report on September 11, 2026, with analysts expecting earnings per share around $1.05-$1.06 and revenues near $34.64-$34.68 billion. Despite growth in digital sales and fresh product categories, the company faces...

Company Fundamentals
Bearish
1 day ago
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