Retail Giant Kroger Trims Identical Sales Outlook As Consumer Spending Tightens: Details
Portfolio Pulse from Shivani Kumaresan
Kroger Company (NYSE:KR) reported a slight decline in Q3 FY23 sales by 0.7% to $33.96 billion, narrowly surpassing estimates. Identical sales without fuel dipped by 0.6%, while adjusted EPS of $0.95 exceeded expectations. Gross margin remained at 22%, with a slight increase in FIFO gross margin rate excluding fuel. Operating expenses rose by 1.1%, but operating margin improved, leading to an 8.4% increase in operating income. Kroger has $1.725 billion in cash and a net debt of $11.3 billion. The company raised the lower end of its full-year adjusted EPS guidance and revised its full-year identical sales outlook due to economic pressures and food-at-home disinflation. KR shares rose by 1.99% to $44.51.
November 30, 2023 | 3:55 pm
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Kroger reported a marginal sales decline but exceeded EPS estimates and raised the lower end of its full-year adjusted EPS guidance. The company revised its identical sales outlook due to economic challenges.
Kroger's better-than-expected EPS and the raised guidance are positive signals for investors, indicating a resilient performance despite a challenging economic environment. The stock price increase reflects investor optimism. However, the revised sales outlook could temper some of the enthusiasm, but the overall impact remains positive in the short term.
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