Kroger trimmed its annual sales outlook following a soft second quarter, yet reaffirmed profit targets as gains in e-commerce and private-label products offset pharmacy-related pressures.
Kroger lowered full-year identical-sales guidance due to pharmacy headwinds, Cyclospora outbreak, and cautious consumer spending, but maintained profit outlook supported by e-commerce, retail media, and private-label growth.
Kroger lowered its full-year identical-sales growth forecast to a range of 0.2% to 0.8%, down from previous expectations of 1% to 2%. The retailer cited pharmacy pressures, a Cyclospora produce outbreak, and cautious consumer spending as primary headwinds, though it maintained its full-year profit and EPS guidance supported by e-commerce and retail media growth.
Kroger lowered its guidance due to pharmacy headwinds linked to the Inflation Reduction Act, a Cyclospora produce outbreak, egg deflation, and more disciplined consumer spending.