10:26 AM EDT, 09/11/2025 (MT Newswires) -- Kroger ( KR ) raised its full-year guidance for identical sales growth on Thursday as the metric topped market estimates in the supermarket chain's fiscal second quarter, while earnings rose above expectations.

The company now anticipates identical sales growth, excluding fuel, to be in a range of 2.7% to 3.4% for fiscal 2025, compared with its prior forecast of 2.25% to 3.25%. The current consensus on FactSet is for same-store sales to grow by 2.9%.

Adjusted earnings are pegged to come in at $4.70 to $4.80 per share for the ongoing fiscal year, reflecting a higher bottom end versus the company's previous outlook of $4.60. The Street is looking for non-GAAP EPS of $4.78.

For the quarter ended Aug. 16, Kroger's ( KR ) adjusted EPS increased to $1.04 from $0.93 the year before, ahead of the average analyst estimate on FactSet of $0.99. Sales edged up to $33.94 billion from $33.91 billion, but missed the Street's view for $34.1 billion.

Identical sales without fuel advanced 3.4%, accelerating from a 1.2% gain in the prior-year period, and surpassing the market's forecast for growth of 2.8%.

"Kroger's ( KR ) second quarter results reflect continued momentum in our business," Chief Financial Officer David Kennerley said in a statement. "Sales growth has been strong, led by pharmacy, eCommerce and Fresh, and we are encouraged by the improvement in grocery volumes."

First-in, first-out gross margin rate, excluding rent, depreciation and amortization, fuel and adjustment items, rose by 39 basis points on a yearly basis mainly due to the sale of the company's specialty pharmacy business last year, lower shrink - which refers to inventory lost due to theft or internal issues - and reduced supply chain costs, it said. Gross margin as a percentage of sales improved to 22.5% from 22.1%.

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