Kroger’s Q2 identical sales edge up 0.2% as cyclospora dents produce
Kroger reported that its identical sales without fuel rose 0.2% in the second quarter of fiscal 2026, while total sales climbed 2% to $34.6 billion and operating profit jumped over 12% to $971 million. The grocer cut its full‑year identical‑sales forecast to a range of 0.2%–0.8%, down from the earlier 1%–2% projection, citing ongoing consumer caution around produce.
Kennerley said the cyclospora outbreak shaved roughly a third of a percentage point off identical sales, while falling egg prices subtracted about 30 basis points and the Inflation Reduction Act trimmed pharmacy sales growth by 140 basis points. He added that a shift to generic medicines cost more than half a percentage point in identical sales, but sales of natural foods, meat, seafood and baked goods remained strong. Adjusted digital sales rose 20%, retail media climbed 24% and the e‑commerce business turned a profit for the second consecutive quarter, according to Foran, while Kroger’s stock gained about 2% on the day but remains down roughly 7% year‑to‑date and 20% over the past six months.
“The grocer now expects its identical sales to rise between 0.2% and 0.8% during the year, down from its previous projection of 1% to 2%,” David Kennerley, CFO said.
“Despite these industry-wide challenges, our teams are executing our plan: keep the customer at the center, move with more speed, be great item merchants,” Greg Foran, CEO said.
Before the quarter, Kroger had projected identical sales growth of 1% to 2% for the full year. The cyclospora outbreak emerged late in the period, prompting shoppers to avoid fresh fruits and vegetables even when not contaminated. Those shifts drove the downward revision to the company’s sales outlook.
What we know
Kroger’s identical sales without fuel edged up 0.2% during the second quarter of fiscal 2026 as headwinds, including reduced spending on produce stemming from the cyclospora crisis, held back the company’s performance, CFO David Kennerley said during an earnings call Friday morning.
The supermarket chain’s total sales moved up 2% year over year in Q2, to $34.6 billion, while its operating profit rose by more than 12%, to $971 million.
The grocer now expects its identical sales to rise between 0.2% and 0.8% during the year, down from its previous projection of 1% to 2%
That dynamic alone shaved about a third of a percentage point off the company’s identical sales, he said