Retail

Kroger Earnings: When Good Isn't Good Enough

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The Kroger Co. (NYSE: KR) released its fiscal first-quarter financial results before the markets opened on Thursday. The grocer reported that it had $0.72 in earnings per share (EPS) and $37.3 billion in revenue, in line with consensus estimates for EPS and below estimated revenue, at $37.21 billion. The same period from last year had $0.73 in EPS and $37.53 billion in revenue.

During this quarter, the decrease in total revenues was due to the sale of Kroger’s convenience store business unit. Total sales, excluding fuel and the effect of selling the unit, increased 2% from the same period last year.

Looking ahead to the fiscal full year, the company expects to see EPS in the range of $2.15 to $2.25 with an operating profit in the range of $2.9 billion to $3 billion. Consensus estimates are calling for $2.19 in EPS and $123.06 billion in revenue for the fiscal full year.

Rodney McMullen, chairman and CEO, commented:

Because the retail industry is constantly transforming, we proactively launched Restock Kroger to deliver for our customers and shareholders. It all starts with our customer obsession, which is why Kroger is assembling a platform to deliver anything, anytime, anywhere.

Shares of Kroger closed Wednesday at $23.64, with a 52-week range of $22.44 to $32.74. The stock has a consensus analyst price target of $28.09. Following the announcement, the stock was down 4% at $22.70 in early-trading indications Thursday.

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