Kroger (NYSE:KR) shares fell 1.2% in pre-market trading after Citi placed the supermarket group on a short-term downside Catalyst Watch ahead of its second-quarter 2026 earnings report.
Citi expects Kroger to report second-quarter earnings per share of $1.05, in line with the current consensus estimate. However, the firm said it sees an increased likelihood that management will lower its full-year comparable sales guidance.
Kroger currently expects comparable sales growth of between 1.0% and 2.0%. Citi believes the company could narrow that range to between 1.0% and 1.5%, citing pricing competition from Walmart as a potential factor affecting the outlook.
The company is scheduled to report its second-quarter results on September 11.
Comparable sales growth slowed in first quarter
Kroger reported identical sales growth of 1% year over year in the first quarter of 2026, compared with growth of 3.2% in the corresponding period a year earlier.
The company also recorded a lower free cash flow margin during the quarter, according to the supplied information.
Citi’s expectations for Kroger’s second-quarter results and potential guidance revision represent analyst forecasts. The company has not announced the guidance reduction anticipated by the brokerage.
Giant Eagle acquisition remains in focus
Investors are also assessing Kroger’s proposed $1.7 billion acquisition of Giant Eagle, which was announced in July.
The transaction would add nearly 200 supermarkets and pharmacies across the Midwest and Mid-Atlantic regions.
The deal remains subject to the applicable approval process, and potential regulatory requirements could include store divestitures. The acquisition would also require Kroger to integrate Giant Eagle’s operations following completion.
Kroger declines alongside broader U.S. market
Kroger’s pre-market decline came as broader U.S. equity markets also traded lower. The S&P 500 fell 0.4%, while the Nasdaq declined 0.9%.
With Kroger’s second-quarter report scheduled for September 11, attention is focused on the company’s comparable sales performance and whether management makes any changes to its full-year outlook.
For Tuesday’s session, the shares were down 1.2% following Citi’s short-term downside Catalyst Watch and its forecast for a narrower comparable sales growth range.
Kroger stock price
