Kroger Backs FY24 Earnings View, Lifts Sales Forecast After Profit In Q2; Stock Up

(RTTNews) - Supermarket chain Kroger Co. on Thursday maintained its fiscal 2024 earnings view and raised the low end of its guidance for identical sales without fuel, after reporting a profit in its second quarter, compared to prior year's loss, amid nearly flat sales. Adjusted earnings also beat market estimates.

On the New York Stock Exchange, Korger shares were gaining around 3.8 percent to trade at $53.47.

Interim CFO Todd Foley said, "Our solid sales results through the first two quarters of the year give us the confidence to raise the low end of our full-year identical sales without fuel guidance by 50 basis points. We now expect identical sales without fuel to be in the range of 0.75 percent to 1.75 percent... Our positive customer trends are driving sales momentum that we expect to continue in the second half of the year."

Regarding the pending merger with Albertsons, Chairman and CEO Rodney McMullen stated that the firm is confident in the facts and the strength of its position as it nears the close of the FTC's preliminary injunction hearing.

For fiscal 2024, the company continues to expect adjusted earnings of $4.30 to $4.50 per share. Analysts on average expect the company to report earnings of $4.44 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Adjusted FIFO operating profit for the year is still expected to be in the range of $4.6 billion to $4.8 billion.

In its second quarter, the company's net earnings attributable was $466 million, compared to loss of $180 million in the same period last year. Earnings per share were $0.64, compared to prior year's loss of $0.25.

Adjusted earnings were $681 million or $0.93 per share for the period, compared to $699 million or $0.96 per share in the prior year. Analysts projected earnings of $0.91 per share for the quarter.

Operating profit was $815 million or 2.4 percent margin, compared to prior year's loss of $479 million or negative 1.4 percent margin.

Adjusted FIFO operating profit was $984 million, compared to $989 million a year ago.

Total company sales were $33.91 billion, slightly higher than $33.85 billion in the same period last year. Excluding fuel, sales increased 1.3 percent compared to the same period last year.

Identical Sales without fuel increased 1.2 percent from last year to $29.22 billion.

The company grew digital sales by 11 percent, and increased delivery sales by 17 percent over last year led by Customer Fulfillment Centers. eCommerce households were up by 14 percent compared to last year.

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