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

FDX Earnings: FedEx Q1 adjusted earnings drop; revenue up 5%

Cargo giant FedEx Corporation (NYSE: FDX) Thursday reported a decline in first-quarter adjusted earnings, despite an increase in revenues. The company also provided guidance for fiscal 2023. Net income, adjusted

Key highlights from Darden Restaurants (DRI) Q1 2023 earnings results

Darden Restaurants, Inc. (NYSE:DRI) reported first quarter 2023 earnings results. Total sales increased 6.1% year-over-year to $2.4 billion, driven by blended same-restaurant sales growth of 4.2%. Net earnings amounted to

ACN Earnings: Key quarterly highlights from Accenture’s Q4 2022 financial results

Accenture (NYSE: ACN) reported fourth quarter 2022 earnings results today. Total revenues were $15.4 billion, up 15% year-over-year in US dollars and up 22.4% in local currency. Net income attributable


Add Comment
Viewing Highlight