Categories Earnings, LATEST, Retail

Kroger stock declines 9% on Q2 revenue miss

The Kroger Co. (KR) topped analysts’ expectations for Q2 earnings but slightly missed the mark on revenues. Identical-store sales, excluding fuel, also came in short of expectations. Shares dropped 9% during pre-market hours.

The retailer reported sales of $27.8 billion for the second quarter of 2018, up 1% from the same period last year. Excluding fuel, the convenience store business unit divestiture and the Home Chef merger, total sales grew 1.8%. Identical sales, excluding fuel, grew 1.6%.

Net income rose to $508 million or $0.62 per share, compared to $353 million or $0.39 per share last year. Adjusted net income was $0.41 per diluted share, above the estimates of $0.38 per share.

Kroger second quarter 2018 earnings
Kroger Q2 2018 Earnings Infographic

For full-year 2018, Kroger expects identical sales growth, excluding fuel, to be 2% to 2.5%. The company revised its GAAP diluted EPS guidance to $3.88 to $4.03 from the previous range of $3.64 to $3.79, due to the unrealized gain in Ocado shares. Adjusted diluted EPS is expected to be $2.00 to $2.15.

Kroger is taking steps to improve its customers’ shopping experience through the rollout of Kroger Ship to four US cities, with further expansion plans underway, and the launch of OptUP, an app that helps customers make healthier purchase decisions.

The company made Simple Truth products available in China through Alibaba’s Tmall Global platform and expanded its partnership with Instacart to increase delivery to 75 additional markets across the US by late October. Kroger is also exploring strategic alternatives for the Turkey Hill Dairy business, including a potential sale.

Earnings preview: Investors cautious ahead of Kroger Q2 results

Most Popular

Intensity Therapeutics is establishing a new field of localized cancer reduction: CEO

Intensity Therapeutics, Inc. (NASDAQ: INTS) is a clinical biotechnology company engaged in the discovery development, and commercialization of first-in-class cancer drugs that attenuate tumors with minimal side effects while training

INTU Earnings: Intuit Q1 2025 adj. profit rises on higher revenues

Financial technology company Intuit Inc. (NASDAQ: INTU) Thursday announced results for the first quarter of 2025, reporting a modest increase in adjusted earnings. The Mountain View-headquartered company’s first-quarter revenue came

Riding the AI wave, Nvidia looks set to stay on the high-growth path

After delivering strong results for the third quarter, Nvidia Corporation (NASDAQ: NVDA) this week said the launch of its new-generation Blackwell chip is on track. The company is thriving on

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top