Citi opened a short-term downside Catalyst Watch on Kroger ahead of its Sept. 11 second-quarter earnings report. The bank expects identical sales and comparable sales to rise 1%, with earnings per share at $1.05, broadly matching consensus estimates. Citi expects management to take a more conservative view of the second half and lower full-year comparable-sales guidance from 1.0% to 2.0% to 1.0% to 1.5%, while reducing the earnings outlook to $5.00-$5.20 from $5.10-$5.30. Citi cut its own full-year EPS estimate to $5.05 from $5.22 and lowered its 2027 forecast, citing expectations that competitive pressure will persist. Walmart is investing about $3 billion from a tariff refund in food and grocery prices to gain market share, a sum that compares with Kroger’s $5 billion in overall EBIT. Citi’s traffic tracker showed Kroger foot traffic growth slowing to 0.4% from 1.7%, and the bank reduced its price target to $57 from $61.