KR

Miss

Earnings Call

Jun 18, 2026

Q2 FY2025

EPS Estimate

1.59

EPS Actual

1.04

Post-Earnings Close

$56.61

Earnings Reaction

-8.4%

Overview

Kroger's second quarter delivered a cleaner-than-expected operational picture, with identical sales without fuel rising 3.4%, the sixth consecutive quarter of improvement and ahead of internal expectations. Adjusted EPS came in at $1.04, representing 12% growth year-over-year and the strongest growth rate since 2023, while adjusted FIFO operating profit reached $1.1 billion. The headline comp was driven by pharmacy, e-commerce, and fresh categories, with grocery unit volumes continuing to recover and now approaching flat year-over-year, a meaningful inflection from the volume erosion that characterized much of 2024.

Key Themes

Segment momentum and mix

The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several

Segment momentum and mix

The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several

Segment momentum and mix

The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several

Segment momentum and mix

The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several

Notable Quotes

“We are confident in the trajectory of the business and the investments we are making across the portfolio, and we expect the momentum we saw this quarter to carry into the back half of the year.”

Chief Executive Officer

“We are confident in the trajectory of the business and the investments we are making across the portfolio, and we expect the momentum we saw this quarter to carry into the back half of the year.”

Report generated on Jun 17, 2026

AI-generated earnings analysis. Not investment advice.

Q&A Summary

The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.

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Overview

Q&A Summary