Kroger Lowers Full-Year Sales Guidance Despite Strong Q2 Earnings
The Kroger Co. reported second-quarter adjusted earnings per share of $1.09, exceeding analyst expectations but revenue fell slightly below estimates at $34.6 billion. The company cut its full-year identical sales growth forecast excluding fuel to between 0.2% and 0.8%, citing a headwind from the Inflation Reduction Act. Kroger maintained its adjusted EPS guidance of $5.10–$5.30, aligning with analyst consensus at $5.20. The company also reiterated full-year operating profit guidance between $5 billion and $5.2 billion. CFO David Kennerley attributed the sales forecast reduction to macroeconomic conditions. Kroger's gross margin rate increased by 13 basis points due to improved e-commerce profitability, media mix, pharmacy performance, and sourcing initiatives. The company repurchased $1 billion in shares during Q2 and raised its dividend for a record 20th consecutive year.
Tickers: $KR
Topics: Earnings Grocery Retail Guidance Cut Revenue