Kroger Q1 FY26: eCommerce turns profitable as comp growth slows to 1.0% on Rx headwinds

Filed June 26, 2026 · Period ending May 23, 2026 · Compared to 10-Q Jun 27, 2025 · ~2 min read

Key Changes

• high

  eCommerce business (including Media) achieved profitability for the first time, with sales up 19% on an adjusted basis driven by Delivery solutions, marking a strategic milestone in the digital transformation.

  MD&A: eCommerce profitability verify on EDGAR →
• high

  Identical sales growth (excluding fuel) decelerated sharply to 1.0% from 3.2% prior year, pressured by Inflation Reduction Act headwinds (130 bp drag), generic Rx substitution (40 bp), and egg deflation (64 bp).

  MD&A: Identical sales verify on EDGAR →
• high

  FIFO gross margin compressed 9 basis points on higher transportation costs, egg deflation, and price investments, partially offset by improved pharmacy margins and eCommerce profitability gains.

  MD&A: FIFO gross margin verify on EDGAR →