March 5 (Reuters) - Kroger forecast tepid annual sales and profit on Thursday, as the supermarket chain operator navigates an uncertain spending environment under a new CEO.
The company is reporting its first set of results under CEO Greg Foran, who had delivered 20 straight quarters of comparable-sales growth as former Walmart U.S. chief. Wall Street analysts had last month cheered his appointment.
Walmart CEO John Furner too had kicked off his tenure with a conservative annual outlook, reflecting
the fragile state of the U.S. consumer.
Kroger expects 2026 identical sales, excluding fuel, to grow in the range of 1% to 2%, whose midpoint is below expectations of a 2% growth.
It forecast adjusted profit per share between $5.10 and $5.30, largely below market expectations of $5.29, according to data compiled by LSEG.
Shares of the company fell 1.3% before the opening bell even as Kroger said its outlook is a result of its efforts "to invest more aggressively in value for customers while improving gross margin".
The company removed CEO Rodney McMullen in March 2025 following a board investigation that found his personal conduct violated company policies.
His exit ended an 11-year tenure and resulted in a prolonged leadership vacuum that ended with the appointment of Foran in February.
In the interim period, the company, under chairman Ron Sargent, focused on its premium-priced private-label brands and stepped up promotions to fend off competition from rivals such as Walmart.
Kroger's digital sales rose 20% in the fourth quarter, driven by strong pickup, delivery demand and growth through partners like DoorDash, Instacart and Uber Eats, and excludes the impact of Ocado fulfillment center exits last year.
The retailer posted sales of $34.73 billion for the quarter ended January 31, missing analysts' estimates of $35.06 billion. It earned $1.28 per share on an adjusted basis, beating estimates of $1.20.
(Reporting by Savyata Mishra in Bengaluru; Editing by Arun Koyyur)
