
Kroger Tops Profit Estimates, Sales Fall Short in ‘Uncertain’ Environment
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Kroger Tops Profit Estimates, Sales Fall Short in ‘Uncertain’ Environment
Kroger’s identical sales excluding fuel rose 3.2%, better than the 2.3% increase that analysts had projected. The retailer lifted its identical sales growth forecast for the full year to 2.25% to 3.25%. Kroger did not give an update on its search for a new CEO, after its previous leader resigned days before last quarter’s report.
The company reported adjusted earnings per share (EPS) of $1.49 on revenue that edged lower year-over-year to $45.12 billion. Analysts surveyed by Visible Alpha had forecast $1.45 and $45.21 billion, respectively. Kroger’s identical sales excluding fuel rose 3.2%, better than the 2.3% increase that analysts had projected.
“While first quarter sales and profitability exceeded our expectations, the macroeconomic environment remains uncertain and as a result other elements of our guidance remain unchanged,” CFO David Kennerley said.
Kroger did not give an update on its search for a new CEO, after its previous leader, Rodney McMullen, abruptly resigned days before last quarter’s report following a company investigation into alleged misconduct.
The retailer lifted its identical sales growth forecast for the full year to 2.25% to 3.25%, and affirmed the rest of its full-year projections. Last quarter, Kroger said it expected fiscal 2025 identical sales growth without fuel of 2% to 3% and adjusted EPS of $4.60 to $4.80.
Kroger shares were little changed immediately after Friday’s report. They entered the day up about 7% since the start of the year.
Friday’s report is Kroger’s second since its proposed merger with Albertsons Companies (ACI) was called off after a judge ruled against it. The companies have since been entwined in legal fights, each accusing the other of violating their agreement.
Source: https://www.investopedia.com/kroger-q1-fy2025-earnings-11757331