Overview
- Kroger reported first-quarter sales of $46.12 billion on Thursday and held its full-year 2026 outlook while identical sales excluding fuel rose 1%.
- Adjusted earnings were $1.58 per share, a one-cent miss of consensus, and GAAP net income was $903 million for the quarter.
- Gross margin narrowed to 22.7% from 23.0% a year earlier because of a higher share of low-margin fuel sales, rising transport costs, and falling egg prices.
- Digital and marketing businesses showed strength with adjusted e-commerce sales up 19% and Kroger Precision Marketing profit rising more than 20%.
- Management announced markdowns on thousands of products to match competitors and said the cuts will be funded partly by direct-sourcing savings and efficiency from technology, a move that coincided with a roughly 3% drop in premarket stock trading.