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KR FY2026 Q1 IN LINE

The Kroger Co. earnings call

Jun 18, 2026 · 04:00 ET David KennerlyGreg ForanRob Quast
Buzzberg read

E-commerce business turned profitable this quarter.

Kroger's new CEO Greg Foran outlined a strategy focused on operational efficiency, cost savings, and measured price investments, while reaffirming full-year guidance. Q1 results showed 1% identical sales growth (ex-fuel), e-commerce turning profitable, and a 30% ahead-of-plan cost savings start. The company announced new partnerships with DoorDash, Uber Eats, Google, and TikTok, while closing three fulfillment centers (likely Ocado) to improve e-commerce economics. Q1 identical sales (ex-fuel) grew 1%, with traffic up and loyal households growing 17 consecutive quarters.

Buzzberg read E-commerce business turned profitable this quarter. Kroger's new CEO Greg Foran outlined a strategy focused on operational efficiency, cost savings, and measured price investments, while reaffirming full-year guidance. Q1 results showed 1% identical sales growth (ex-fuel), e-commerce turning profitable, and a 30% ahead-of-plan cost savings start. The company announced new partnerships with DoorDash, Uber Eats, Google, and TikTok, while closing three fulfillment centers (likely Ocado) to improve e-commerce economics. Q1 identical sales (ex-fuel) grew 1%, with traffic up and loyal households growing 17 consecutive quarters. Read full analysisCollapse analysis

Kroger's new CEO Greg Foran outlined a strategy focused on operational efficiency, cost savings, and measured price investments, while reaffirming full-year guidance. Q1 results showed 1% identical sales growth (ex-fuel), e-commerce turning profitable, and a 30% ahead-of-plan cost savings start. The company announced new partnerships with DoorDash, Uber Eats, Google, and TikTok, while closing three fulfillment centers (likely Ocado) to improve e-commerce economics. Q1 identical sales (ex-fuel) grew 1%, with traffic up and loyal households growing 17 consecutive quarters.

  • E-commerce (including media) turned profitable for the first time, ahead of schedule.
  • Cost of goods sold savings were 30% ahead of plan, with multi-year runway.
  • Unexpected 15 bps gross margin headwind from higher diesel costs; management sees it as manageable.
Revenue $46.121B +33% QoQ
EPS $1.58 +23% QoQ
Gross margin 23.04% reported
Op margin 3.05% reported

What changed this quarter

01
Margins

E-commerce business turned profitable this quarter.

Reported gross margin was 23.04%, reinforcing the quarter's better-than-guided profitability.

02
Margins

COGS savings 30% ahead of plan in Q1.

Reported gross margin was 23.04%, reinforcing the quarter's better-than-guided profitability.

03
Guidance

Every dollar invested in price earned through cost savings.

Guidance tone

04
Demand

Customer under pressure from high gas and SNAP cuts.

New CEO Greg Foran set a confident but realistic tone, emphasizing the need for cost discipline and execution to close the gap, while highlighting positive signs like e-commerce profitability and market share gains.

AI, capex & demand read

AI

Platform & monetization

Management mentioned applying AI across the business to improve efficiency and expanding AI-powered capabilities for real-time optimization in the media business.

Demand

Bookings & conversion

Customer under pressure from high gas and SNAP cuts.. New CEO Greg Foran set a confident but realistic tone, emphasizing the need for cost discipline and execution to close the gap, while highlighting positive signs like e-commerce profitability and market share gains.

Tone · confident

New CEO Greg Foran set a confident but realistic tone, emphasizing the need for cost discipline and execution to close the gap, while highlighting positive signs like e-commerce profitability and market share gains.

Supply-chain alpha

A1

Kroger's e-commerce business turned profitable this quarter ahead of schedule, driven by store-based fulfillment and media growth, signaling a shift that may pressure pure-play grocery delivery models.

“Our e-commerce business, including media, turned profitable this quarter. That's a real step up and we intend to keep building on it.”
Greg Foran
A2

Kroger reported an unexpected 15 bps gross margin headwind from higher diesel costs, indicating transportation cost pressures are spreading broadly in the supply chain.

“Transportation was an unexpected headwind, resulting in 15 basis points of pressure in the quarter as higher oil prices impacted our fuel costs.”
David Kennerly

Company read-throughs

+37.6%
since call
$165.29$227.48
+7.8%
since call
$71.44$76.99
PartnersSupply-chain alpha

Kroger's e-commerce business turned profitable this quarter ahead of schedule, driven by store-based fulfillment and media growth, signaling a shift that may pressure pure-play grocery delivery models. — Improving e-commerce economics at a major grocer could intensify competition for third-party delivery platforms and reduce their long-term growth prospects.

“Our new third-party partnerships with DoorDash and Uber Eats allow us to leverage our store network, provide faster delivery, and reach new customers.”
David Kennerly
-6.7%
since call
$362.47$338.27
Partners

Alphabet strengthens its advertising platform by integrating Kroger's first-party retail data, enhancing targeting capabilities.

“With Google's Display and Video 360 platform, advertisers can now use KPM's retail signals to reach audiences across YouTube and YouTube TV with SKU-level conversion reporting available for the first time.”
David Kennerly
BYTEDANCE
Private company
Partners

TikTok gains a significant retail media partnership, expanding its advertising offerings with robust purchase data.

“We're also the first retail media network set to launch a self-service collaboration with TikTok, giving brands direct access to KPM audiences within one of today's most influential platforms.”
David Kennerly
-3.4%
since call
$106.50$102.86
since call
-4.1%
since call
$271.22$260.22
Supply chainSupply-chain alpha

Kroger reported an unexpected 15 bps gross margin headwind from higher diesel costs, indicating transportation cost pressures are spreading broadly in the supply chain. — Rising fuel costs are squeezing margins across logistics-heavy industries; competitors and carriers may face similar headwinds.