By Dean Seal

Kroger turned in higher sales and earnings in its fiscal first quarter as fuel revenue rose and its e-commerce business picked up gains.

The grocer posted a profit of $903 million, or $1.46 a share, compared with $866 million, or $1.30 a share, in the same quarter a year earlier.

Stripping out one-time items, adjusted earnings were $1.58 a share, a penny lower than what analysts had been forecasting.

Sales rose about 2% to $46.12 billion, ahead of analyst targets for $45.59 billion, according to FactSet.

Identical sales, or those from stores open for at least five full quarters, were up 1% when excluding fuel sales.

Gross margin slipped slightly due to higher fuel sales, higher transportation costs and deflation in egg prices. Those pressures were only partially offset by a more favorable mix of pharmacy sales, better profitability from its digital retail strategy and benefits from its sourcing efforts, Kroger said.

Despite the compressed margin, Kroger increased its operating profit thanks to lower depreciation and amortization, even as overhead costs rose.

"We are pleased with our first quarter results, but we know there is more work to do," said Chief Executive Greg Foran, who took the helm earlier this year.

Shares slid 3% to $59.97 in premarket trading.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

June 18, 2026 07:44 ET (11:44 GMT)

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