Kroger's stock experienced a significant pre-market plunge of 5.01% on Thursday following the release of its first-quarter financial results.

The U.S. grocer reported adjusted earnings per share of $1.58 for the quarter, slightly missing the analyst consensus estimate of $1.59. While quarterly sales of $46.12 billion beat expectations, the company's gross margin declined to 22.7% of sales from 23% a year ago, pressured by higher transportation costs and planned investments in price reductions to attract value-seeking shoppers.

Kroger maintained its full-year 2026 guidance unchanged, underscoring a cautious outlook amid tightening consumer spending and growing inflationary pressures. The company's decision to reaffirm its annual forecast while facing margin compression and a competitive landscape contributed to negative investor sentiment during the pre-market session.