Kroger Q2 2027: EPS beat masks a sharp slowdown in store traffic
As seen on the 24/7 Wall St. homepage on September 11, 2026.
Kroger cut full-year identical sales guidance to 0.2%-0.8% from 1.0%-2.0%, with quarterly identical sales without fuel growing just 0.2% versus 3.4% a year ago. Management held adjusted EPS guidance of $5.10 to $5.30 and bought back $1.0 billion of stock in the quarter, so the profit story is intact while the traffic story weakens.
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Kroger posted adjusted EPS of $1.09 for its fiscal second quarter, beating the $1.06 consensus estimate, with revenue in line with estimates.
Identical sales without fuel grew just 0.2% in the quarter, against 3.4% a year ago, and Kroger cut its full-year identical sales guidance to 0.2%-0.8% from 1.0%-2.0%. Fewer shoppers, or smaller baskets, are showing up in the numbers.
Kroger reaffirmed its full-year adjusted EPS guidance of $5.10 to $5.30 and repurchased $1.0 billion of its own shares during the quarter, a signal that management views the current price as attractive despite the guidance trim. Faster-growing eCommerce and Precision Marketing are partially cushioning the pressure on in-store volume.
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Operating income rose 12.5% year over year to $971 million, with cost discipline, a favorable pharmacy mix and improving eCommerce profitability offsetting higher shrink and transportation costs as the top line softens.
An investor update meeting is planned for October 20, 2026, where management has said it will share strategic initiatives and longer-term financial targets. That is the next concrete moment for the market to reassess the current trajectory.
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