AI Earnings Predictions for Kroger Company (The) (KR)

EX-99.1

2 tm2625060d1_ex99-1.htm

EXHIBIT 99.1

Exhibit 99.1

Kroger Reports Second Quarter 2026 Results

and Updates Guidance for 2026

Second Quarter Highlights

·Identical Sales without fuel increased 0.2%

·Operating Profit of $971 million; EPS of $1.05

·Adjusted FIFO Operating Profit of $1,076 million and Adjusted EPS of $1.09

·Adjusted eCommerce sales grew +20%1; Kroger Precision Marketing profit grew +24%

CINCINNATI, September 11, 2026 – The Kroger Co. (NYSE: KR) today reported results for its second quarter ended August 15, 2026. Kroger reaffirmed its full-year adjusted net earnings per diluted share guidance, lowered its full-year 2026 identical sales without fuel guidance, and shared progress on key priorities.

Comments from CEO Greg Foran

“Kroger delivered a solid second quarter, with adjusted EPS growth of 5 percent. I am pleased with the progress we are making. Our teams kept driving value for customers, improving execution in our stores, growing eCommerce profitably and managing costs with discipline. Improving sales momentum remains a top priority. While there is more work to do, I am confident in our plan to become America's favorite grocer."

1 Adjusted eCommerce sales exclude the effect of fulfillment center exits in markets where Kroger does not operate stores, the sale of Vitacost, and the discontinuation of Ship Marketplace.

1

Second Quarter Financial Results

2Q26

($ in millions; except EPS)

2Q25

($ in millions; except EPS)

ID Sales(1) (Table 4) 0.2% 3.4%

Earnings Per Share $1.05 $0.91

Adjusted EPS (Table 6) $1.09 $1.04

Operating Profit $971 $863

Adjusted FIFO Operating Profit (Table 7) $1,076 $1,091

Gross Margin (Table 8) 22.4% 22.5%

FIFO Gross Margin Rate(2) Increased 13 basis points

OG&A Rate(3) Increased 33 basis points

(1) Without fuel and includes an unfavorable 138 basis point impact from the Inflation Reduction Act.

(2) Without rent, depreciation and amortization, fuel and adjustment items, if applicable.

(3) Without fuel and adjustment items, if applicable.

Total company sales were $34.6 billion in the second quarter compared to $33.9 billion for the same period last year. Excluding fuel, the sale of Vitacost and the exit of certain fulfillment centers, sales increased 0.1% compared to the same period last year.

Gross margin was 22.4% of sales for the second quarter compared to 22.5% for the same period last year. The decrease in rate was primarily driven by the mix effect of higher fuel sales, higher shrink, higher transportation costs and greater value delivered for customers. These pressures were partially offset by improvement in eCommerce profitability and media, favorable pharmacy mix, sourcing initiatives, tariff refunds, the decreased LIFO charge and depreciation and amortization.

The FIFO gross margin rate, excluding rent, depreciation and amortization, and fuel increased 13 basis points compared to the same period last year. The improvement was primarily driven by improvement in eCommerce profitability and media, favorable pharmacy mix, sourcing initiatives and tariff refunds. These benefits were partially offset by higher shrink, higher transportation costs and greater value delivered for customers.

The LIFO charge for the quarter was $39 million, compared to a LIFO charge of $62 million for the same period last year.

The Operating, General and Administrative rate, excluding fuel and adjustment items, increased 33 basis points compared to the same period last year. The increase was primarily attributable to planned investments in associate wages, increased health care costs, and sales deleverage, partially offset by lower incentive plan costs and ongoing productivity initiatives.

Capital Allocation

Kroger expects to continue to generate strong free cash flow and remains committed to investing in the business to drive long-term sustainable net earnings growth, as well as maintaining its current investment grade debt rating. The Company expects to continue to pay its quarterly dividend and expects this to increase over time, subject to board approval.

Earlier this quarter, Kroger increased its dividend by 11%, marking the 20th consecutive year of dividend increases. Additionally, during the quarter, Kroger repurchased $1.0 billion in shares and year-to-date has repurchased $1.2 billion in shares under the $2 billion board authorization announced in December 2025. As of the end of the second quarter, approximately $800 million remains of the authorization, and Kroger expects to complete the remaining repurchases by the end of fiscal 2026.

2

Kroger’s net total debt to adjusted EBITDA ratio is 1.91, compared to 1.63 a year ago (Table 5). The company’s net total debt to adjusted EBITDA ratio target range is 2.30 to 2.50. Kroger’s strong balance sheet provides ample opportunities for the Company to invest in the business and enhance shareholder value.

Full-Year 2026 Guidance*

Adjusted Metric*

FY26

Guidance as of

June 18, 2026

FY26

Guidance a

EX-99.1

2 tm2625060d2_ex99-1.htm

EXHIBIT 99.1

Exhibit 99.1

Kroger Reports Second Quarter 2026 Results

and Updates Guidance for 2026

Second Quarter Highlights

·Identical Sales without fuel increased 0.2%

·Operating Profit of $971 million; EPS of $1.05

·Adjusted FIFO Operating Profit of $1,076 million and Adjusted EPS of $1.09

·Adjusted eCommerce sales grew +20%1; Kroger Precision Marketing profit grew +24%

CINCINNATI, September 11, 2026 – The Kroger Co. (NYSE: KR) today reported results for its second quarter ended August 15, 2026. Kroger reaffirmed its full-year adjusted net earnings per diluted share guidance, lowered its full-year 2026 identical sales without fuel guidance, and shared progress on key priorities.

Comments from CEO Greg Foran

“Kroger delivered a solid second quarter, with adjusted EPS growth of 5 percent. I am pleased with the progress we are making. Our teams kept driving value for customers, improving execution in our stores, growing eCommerce profitably and managing costs with discipline. Improving sales momentum remains a top priority. While there is more work to do, I am confident in our plan to become America's favorite grocer."

1 Adjusted eCommerce sales exclude the effect of fulfillment center exits in markets where Kroger does not operate stores, the sale of Vitacost, and the discontinuation of Ship Marketplace.

1

Second Quarter Financial Results

2Q26

($ in millions; except EPS)

2Q25

($ in millions; except EPS)

ID Sales(1) (Table 4) 0.2% 3.4%

Earnings Per Share $1.05 $0.91

Adjusted EPS (Table 6) $1.09 $1.04

Operating Profit $971 $863

Adjusted FIFO Operating Profit (Table 7) $1,076 $1,091

Gross Margin (Table 8) 22.4% 22.5%

FIFO Gross Margin Rate(2) Increased 13 basis points

OG&A Rate(3) Increased 33 basis points

(1) Without fuel and includes an unfavorable 138 basis point impact from the Inflation Reduction Act.

(2) Without rent, depreciation and amortization, fuel and adjustment items, if applicable.

(3) Without fuel and adjustment items, if applicable.

Total company sales were $34.6 billion in the second quarter compared to $33.9 billion for the same period last year. Excluding fuel, the sale of Vitacost and the exit of certain fulfillment centers, sales increased 0.1% compared to the same period last year.

Gross margin was 22.4% of sales for the second quarter compared to 22.5% for the same period last year. The decrease in rate was primarily driven by the mix effect of higher fuel sales, higher shrink, higher transportation costs and greater value delivered for customers. These pressures were partially offset by improvement in eCommerce profitability and media, favorable pharmacy mix, sourcing initiatives, tariff refunds, the decreased LIFO charge and depreciation and amortization.

The FIFO gross margin rate, excluding rent, depreciation and amortization, and fuel increased 13 basis points compared to the same period last year. The improvement was primarily driven by improvement in eCommerce profitability and media, favorable pharmacy mix, sourcing initiatives and tariff refunds. These benefits were partially offset by higher shrink, higher transportation costs and greater value delivered for customers.

The LIFO charge for the quarter was $39 million, compared to a LIFO charge of $62 million for the same period last year.

The Operating, General and Administrative rate, excluding fuel and adjustment items, increased 33 basis points compared to the same period last year. The increase was primarily attributable to planned investments in associate wages, increased health care costs, and sales deleverage, partially offset by lower incentive plan costs and ongoing productivity initiatives.

Capital Allocation

Kroger expects to continue to generate strong free cash flow and remains committed to investing in the business to drive long-term sustainable net earnings growth, as well as maintaining its current investment grade debt rating. The Company expects to continue to pay its quarterly dividend and expects this to increase over time, subject to board approval.

Earlier this quarter, Kroger increased its dividend by 11%, marking the 20th consecutive year of dividend increases. Additionally, during the quarter, Kroger repurchased $1.0 billion in shares and year-to-date has repurchased $1.2 billion in shares under the $2 billion board authorization announced in December 2025. As of the end of the second quarter, approximately $800 million remains of the authorization, and Kroger expects to complete the remaining repurchases by the end of fiscal 2026.

2

Kroger’s net total debt to adjusted EBITDA ratio is 1.91, compared to 1.63 a year ago (Table 5). The company’s net total debt to adjusted EBITDA ratio target range is 2.30 to 2.50. Kroger’s strong balance sheet provides ample opportunities for the Company to invest in the business and enhance shareholder value.

Full-Year 2026 Guidance*

Adjusted Metric*

FY26

Guidance as of

June 18, 2026

FY26

Guidance a

EX-99.1

2 tm2618219d1_ex99-1.htm

EXHIBIT 99.1

Exhibit 99.1

Kroger Reports First Quarter 2026 Results

First Quarter Highlights

·Identical Sales without fuel increased 1.0%1

·Operating Profit of $1,407 million; EPS of $1.46

·Adjusted FIFO Operating Profit of $1,544 million and Adjusted EPS of $1.58

·Adjusted eCommerce sales grew +19%2; Kroger Precision Marketing profit grew over 20%

CINCINNATI, June 18, 2026 – The Kroger Co. (NYSE: KR) today reported its first quarter 2026 results, maintained 2026 guidance, and shared progress on key priorities.

Comments from CEO Greg Foran

“I joined Kroger because I believe it represents the best opportunity in retail. We serve millions of families every day, in our stores and online. We have the right stores in the right places, unmatched customer insights, and the ability to win. Our focus is clear: to become America's best grocer. We will measure ourselves against that every day.

We are pleased with our first quarter results, but we know there is more work to do. That is why we are building a culture that is never satisfied, with a constant focus on serving our customers better."

1 Excludes adjustment items. See table 4.

2 Adjusted eCommerce sales exclude the effect of fulfillment center exits in markets where Kroger does not operate stores, the sale of Vitacost, and the discontinuation of Ship Marketplace.

1

First Quarter Financial Results

1Q26

($ in millions; except EPS)

1Q25

($ in millions; except EPS)

ID Sales(1) (Table 4) 1.0% 3.2%

Earnings Per Share $1.46 $1.29

Adjusted EPS (Table 6) $1.58 $1.49

Operating Profit $1,407 $1,322

Adjusted FIFO Operating Profit (Table 7) $1,544 $1,518

Gross Margin (Table 8) 22.7% 23.0%

FIFO Gross Margin Rate(2) Decreased 9 basis points

OG&A Rate(3) Increased 16 basis points

(1) Without fuel and adjustment items, if applicable, and includes an unfavorable 130 basis point impact from the Inflation Reduction Act.

(2) Without rent, depreciation and amortization, fuel and adjustment items, if applicable.

(3) Without fuel and adjustment items, if applicable.

Total company sales were $46.1 billion in the first quarter compared to $45.1 billion for the same period last year. Excluding fuel and Vitacost, sales increased 0.5% compared to the same period last year.

Gross margin was 22.7% of sales for the first quarter compared to 23.0% for the same period last year. The decrease in rate was primarily driven by the mix impact of higher fuel sales, higher transportation costs, egg deflation, and planned price investments. These pressures were partially offset by favorable pharmacy mix, improved eCommerce profitability, sourcing benefits, and lower depreciation.

The FIFO gross margin rate, excluding rent, depreciation and amortization, fuel, and adjustment items decreased 9 basis points compared to the same period last year. The decrease in rate was primarily driven by the impacts from higher transportation costs, egg deflation, and planned price investments. These pressures were partially offset by favorable pharmacy mix, improved eCommerce profitability, and sourcing benefits.

The LIFO charge for the quarter was $52 million, compared to a LIFO charge of $40 million for the same period last year.

The Operating, General and Administrative rate, excluding fuel and adjustment items, increased 16 basis points compared to the same period last year. The increase in rate was primarily attributable to planned investments in associate wages and hours to enhance the customer experience, partially offset by lapping higher multi-employer pension contributions from the prior year and ongoing productivity initiatives.

Capital Allocation

Kroger expects to continue to generate strong free cash flow and remains committed to investing in the business to drive long-term sustainable net earnings growth, as well as maintaining its current investment grade debt rating. The Company expects to continue to pay its quarterly dividend and expects this to increase over time, subject to board approval.

2

In December 2025, Kroger’s Board of Directors approved an additional $2 billion share repurchase authorization. Kroger expects to complete these repurchases by the end of fiscal 2026.

Kroger’s net total debt to adjusted EBITDA ratio is 1.75, compared to 1.69 a year ago (Table 5). The company’s net total debt to adjusted EBITDA ratio target range is 2.30 to 2.50. Kroger’s strong balance sheet provides ample opportunities for the Company to invest in the business and enhance shareholder value.

Full-Year 2026 Guidance*

Reaffirmed

Adjusted Metric*

FY26

Guidance

Identical Sales without fuel** 1.0% - 2.0%

FIFO Operating Profit $5.0 - $5.2 billion

EPS $5.10 - $5.30

Free Cash Flow $2.7 - $2.9 billion

Cap Ex $3.8 - $4.0 billion

Tax Rate*** 23%

* Without adjusted items, if applicable. Kroger is unable to provide a full reconciliation of the GAAP and non-GAAP measures used in 2026 guidance without unreasonable effort because it is not possi