Kroger cuts annual identical-sales forecast to 0.2%-0.8% amid cautious spending

  • Kroger cut its full-year identical-sales forecast excluding fuel to 0.2%-0.8%.
  • 0.2% second-quarter identical-sales growth missed LSEG's 0.9% estimate and fell from 3.4%.
  • Kroger's updated forecast includes a roughly 140-basis-point headwind from the Inflation Reduction Act.

Kroger cut its full-year identical-sales forecast excluding fuel to growth of 0.2% to 0.8%, from a previous range of 1% to 2%. Its shares fell about 3% in premarket trading. Second-quarter identical-sales growth slowed to 0.2% from 3.4% a year earlier and missed the 0.9% estimate compiled by LSEG. The revision comes as U.S. consumer sentiment weakened in August and retail sales unexpectedly declined in July for the first time in nine months, with middle- and lower-income households prioritizing essentials and value purchases amid persistent inflation. Kroger said the updated outlook includes a roughly 140-basis-point headwind from the Inflation Reduction Act, which reduced prescription-drug prices for Medicare beneficiaries and affected pharmacy revenue.

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