The Kroger Co. (NYSE:KR) shares traded lower in Thursday’s premarket session after the grocery retailer reported mixed first-quarter results, with earnings narrowly missing Wall Street estimates despite stronger-than-expected revenue.
First-Quarter Results
Kroger reported adjusted earnings of $1.58 per share, missing the consensus estimate of $1.59. Revenue rose to $46.12 billion, topping analysts’ expectations of $45.47 billion.
Excluding fuel, identical sales increased 1.0% year over year. Sales excluding fuel and Vitacost increased 0.5% year over year.
Adjusted eCommerce sales climbed 19% from a year earlier. Profit from Kroger Precision Marketing increased by more than 20% year over year.
The company recorded a $52 million LIFO charge during the quarter, compared with a $40 million charge in the prior-year period.
Operating profit increased to $1.407 billion from $1.322 billion a year earlier.
Gross margin narrowed to 22.7% from 23.0% a year ago. The company attributed the decline to a higher mix of fuel sales, increased transportation costs, egg deflation, and planned price investments.
The company also noted that its board approved an additional $2 billion share repurchase program in December 2025. Kroger expects to complete the buybacks by the end of fiscal 2026.
Kroger Outlook
Kroger affirmed its fiscal 2026 outlook for identical sales, excluding fuel, to increase 1% to 2%.
The company expects adjusted earnings of $5.10 to $5.30 per share, compared with the Wall Street consensus estimate of $5.27.
Kroger also maintained its forecast for FIFO operating profit of $5.0 billion to $5.2 billion, free cash flow of $2.7 billion to $2.9 billion, and capital expenditures of $3.8 billion to $4.0 billion.
KR Price Action: Kroger shares were down 10.36% at $55.88 during premarket trading on Thursday, according to Benzinga Pro data.
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