Kroger (NYSE:KR) released its forecast for the current fiscal year, with guidance for both sales and profits coming in below Wall Street expectations as newly appointed CEO Greg Foran begins his tenure at a time of uncertainty around consumer spending.
U.S. households continue to face several economic pressures, including elevated living costs, a labor market that remains subdued though stabilizing, and ongoing shifts in tariff policies.
Although consumers could see some relief from lower tax rates this year, escalating tensions in the Middle East have added fresh uncertainty to the broader economic outlook.
Taking leadership during this period is CEO Greg Foran, who assumed the role in February. Foran previously led Walmart’s U.S. operations, where he oversaw 20 straight quarters of comparable sales growth.
Kroger said it expects identical sales, excluding fuel, to increase between 1% and 2% in 2026. The outlook falls short of analysts’ expectations of roughly 2% growth at the midpoint, according to LSEG data cited by Reuters.
The company also forecast adjusted earnings per share of $5.10 to $5.30, below the consensus estimate of $5.29 at the midpoint.
Quarterly revenue totaled $34.73 billion, slightly missing expectations of $34.98 billion. Adjusted earnings per share for the fourth quarter were $1.28, exceeding Bloomberg consensus estimates of $1.21.
Kroger shares were modestly lower in U.S. premarket trading on Thursday.