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Kroger Posts Q3 Loss, Narrows Outlook as E‑Commerce Overhaul Advances

Management says the online business should turn profitable in 2026 following a completed strategic review.

Overview

  • Kroger reported a third‑quarter net loss of $1.32 billion and an operating loss of $1.54 billion, reversing profits from a year earlier.
  • Revenue totaled $33.85 billion as identical sales excluding fuel rose 2.6% and gross margin improved to 22.8%.
  • The company tightened full‑year guidance to adjusted EPS of $4.75–$4.80 and identical sales growth of 2.8%–3.0%, while maintaining operating income of $4.8–$4.9 billion and its capital spending plan.
  • Executives said the e‑commerce review is complete and projected the online operation to achieve profitability in 2026.
  • Shares fell for a third session to close at $63.14 on Thursday, and several firms cut price targets, including Telsey ($80), JPMorgan ($71), Wells Fargo ($70), Evercore ISI ($77) and UBS ($70), with ratings largely unchanged.