Kroger reported second-quarter fiscal 2026 adjusted earnings of $1.09 per share, up 4.8% year over year and ahead of the Zacks Consensus Estimate of $1.05, even as identical sales excluding fuel rose just 0.2%, down from 3.4% growth a year earlier. Total sales increased 2% to $34.62 billion but fell short of the $34.69 billion consensus mark, and the company lowered its fiscal 2026 identical-sales guidance excluding fuel to 0.2%-0.8% from 1%-2% while maintaining adjusted earnings guidance of $5.10-$5.30 per share. The stock trades at 10.78X forward 12-month earnings, below its five-year median of 12.08X and well under the 30.68X for the Zacks sub-industry, 20.83X for the Zacks Retail-Wholesale sector and 19.66X for the S&P 500, consistent with a Value Score of A. Growth engines held up, with adjusted e-commerce sales up 20%, Kroger Precision Marketing profit up 24% for its best growth rate since 2021, and Our Brands outpacing national brands by 250 basis points as Private Selection sales rose more than 14%. Profitability faced pressure from higher shrink, transportation, healthcare and planned wage investments, with additional diesel and freight pressure expected through the rest of fiscal 2026, while Walmart posted 2.6% U.S. comparable-sales growth excluding fuel and 24% U.S. e-commerce growth and Costco reported 7.2% adjusted U.S. comparable-sales growth and 19.8% adjusted digitally enabled growth. Kroger carries a Zacks Rank #3 (Hold) with a VGM Score of A, Value Score of A, Growth Score of B and Momentum Score of D.
Kroger CompanyQ2 EPS beat but identical sales slowed to 0.2% and fiscal 2026 identical-sales guidance was cut to 0.2%-0.8%.
Costco Wholesale Corp
Walmart Inc.