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The grocery chain lowered its full-year identical sales forecast to 0.2%–0.8% from 1%–2%, citing the Inflation Reduction Act's effect on pharmacy revenue
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Kroger cut its full-year same-store sales outlook on Friday and Kroger stock fell, even as the grocery chain posted stronger adjusted earnings than a year earlier.
Kroger's revised outlook calls for identical sales, excluding fuel, to land in the 0.2%–0.8% range for fiscal 2026, compared with its earlier forecast of 1%–2% growth. That updated forecast reflects an approximately 140 basis point drag from the Inflation Reduction Act, legislation that reduced what Medicare beneficiaries pay for prescription drugs and consequently hurt pharmacy revenue, the company said. Kroger reaffirmed its full-year adjusted earnings guidance of $5.10 to $5.30 per share.
