Kroger aims to become America's favorite supermarket, despite weak growth and a downward revision to its full-year forecast, as new CEO Greg Foran emphasized in his second-quarter earnings report. The U.S. group closed the period with net sales of $34,6 billion, up just 0,2% from the same quarter a year earlier, a modest increase that confirms the company's struggles to regain momentum and market share.
Foran nonetheless described the quarterly performance as "solid," highlighting the progress made in convenience, in-store execution, e-commerce profitability, and cost control. "I'm pleased with the progress we're making," the CEO stated, noting how the teams continued to create value for customers and improve supermarket operations.
The priority, however, remains reviving sales, essential to sustaining the group's ambitions in an increasingly competitive US market characterized by price-conscious consumers. "Improving sales momentum remains a top priority. While there is still much work to do, I am confident in our plan to become America's favorite supermarket," Foran added.
Offsetting the essentially stable revenues was improved profitability, driven by cost-cutting measures implemented by the company in recent months. Profit reached $641 million, up 5,2% year-over-year, demonstrating how greater operational discipline allowed Kroger to protect margins despite limited sales growth.
However, management remains cautious about its outlook for the second half of the year, during which it expects demand to slow and consumer spending to remain significant. Kroger has therefore lowered its guidance for fiscal 2026, lowering its sales growth forecast to 0,2% to 0,8%, compared to the previously indicated range of 1% to 2%.
The revision primarily reflects a more complex economic environment, in which uncertainty continues to impact households' purchasing decisions and makes it more difficult to pass on cost increases to final prices. According to CFO David Kennerley, the second-quarter results nevertheless demonstrate the resilience of Kroger's business model and the discipline with which the group is pursuing its plans.
"The results demonstrate the resilience of Kroger's model and the discipline with which our teams are working," Kennerley said, reiterating his intention to continue investing in growth. At the same time, the group plans to maintain rigorous management of margins and expenses, seeking to balance the necessary investments to improve stores, digital services, and commercial offerings with the goal of creating long-term value. Foran's challenge will therefore be to translate operational improvements into a more visible recovery in sales, strengthening customer relationships, and making Kroger's positioning in the competitive American grocery market more compelling.
