Kroger reported first quarter identical sales without fuel increased 1.0 percent, with operating profit of $1.407 billion and earnings per share of $1.46. Adjusted FIFO operating profit came in at $1.544 billion, and adjusted EPS was $1.58. Adjusted e-commerce sales grew 19 percent, and Kroger Precision Marketing profit grew more than 20 percent.
“I joined Kroger because I believe it represents the best opportunity in retail,” said Kroger CEO Greg Foran.
“We serve millions of families every day, in our stores and online. We have the right stores in the right places, unmatched customer insights and the ability to win. Our focus is clear: to become America’s best grocer. We will measure ourselves against that every day. We are pleased with our first quarter results, but we know there is more work to do. That is why we are building a culture that is never satisfied, with a constant focus on serving our customers better.”
Total company sales were $46.1 billion in the first quarter, compared to $45.1 billion for the same period last year. Excluding fuel and Vitacost, sales increased 0.5 percent.
Gross margin was 22.7 percent of sales for the first quarter, compared to 23.0 percent for the same period last year. The decrease was driven by higher fuel sales mix, higher transportation costs, egg deflation, and planned price investments, partially offset by favorable pharmacy mix, improved e-commerce profitability, sourcing benefits, and lower depreciation. The LIFO charge for the quarter was $52 million, compared to $40 million for the same period last year.
The operating, general and administrative rate, excluding fuel and adjustment items, increased 16 basis points, primarily due to planned investments in associate wages and hours, partially offset by lapping higher multi-employer pension contributions and ongoing productivity initiatives.
Kroger reaffirmed its full‑year 2026 guidance: identical sales without fuel of 1.0 to 2.0 percent; FIFO operating profit of $5.0 to $5.2 billion; EPS of $5.10 to $5.30; free cash flow of $2.7 to $2.9 billion; and capital expenditures of $3.8 to $4.0 billion. The company’s net total debt to adjusted EBITDA ratio is 1.75, compared to 1.69 a year ago, well below its target range of 2.30 to 2.50.