Kroger's stock experienced a sharp decline of 5% in the after-hours session, following the release of its fourth-quarter earnings and full-year guidance. The supermarket chain reported mixed results for the quarter, with profit exceeding expectations but sales falling short of analyst estimates.
The after-hours plunge appears to be driven by the company's muted annual forecast for fiscal 2026. Kroger expects identical sales growth, excluding fuel, to be in the range of 1% to 2%, which is below Wall Street expectations of approximately 2% growth. Additionally, the company's adjusted earnings per share guidance of $5.10 to $5.30 largely surrounds but falls slightly below the consensus estimate of $5.29.
The cautious outlook comes as new CEO Greg Foran aims to boost market share by focusing on affordable fresh food and improved delivery services for budget-conscious customers. The company plans to reinvest cost savings into lower prices and better service, reflecting the competitive pressures in the grocery retail sector and the fragile state of consumer spending.