Not biting off more you can chew, Kroger (NYSE: KR) is being conservative on annual forecast as new CEO takes helm

Kroger has unveiled a forecast for current-year sales and profit which largely underwhelmed Wall Street expectations, as the supermarket group’s new CEO takes the helm during a time of widespread uncertainty around consumer spending.

American shoppers have been grappling with a variety of potential headwinds, including elevated living costs, a muted — albeit stabilizing — labor market, and a shifting tariff environment.

Although consumers are anticipated to receive a boost from a decline in tax rates this year, an escalating conflict in the Middle East has cast a fresh pall over the wider outlook.

Into this operating backdrop steps CEO Greg Foran, who was appointed in February. Foran previously delivered 20 consecutive quarters of comparable sales expansion as chief of Walmart U.S.

Against this backdrop, Kroger said it expects 2026 identical sales, stripping out fuel, to rise in a range of 1% to 2%, falling short of expectations of 2% growth at the midpoint, according to LSEG data cited by Reuters.

Adjusted profit per share is seen at $5.10 to $5.30, also short of projections of $5.29 at the midpoint.