Kroger delivers mixed Q4 print and soft annual profit, same-store sales guidance

March 07, 2025 01:01 AM AEDT | By Investing

Google News:

Kroger delivers mixed Q4 print and soft annual profit, same-store sales guidance

Recent News

ASX 200 Gains as Middle East Tensions Cool and Wall Street Strengthens

ASX 200 Rises as Ceasefire Boosts Sentiment; Energy Stocks Lag Amid Oi...

ASX 200 Edges Lower as Resources Drag, Banks Provide Cushion | Market...

ASX 200 Director Trades: GQG’s CIO Buys More Shares Amid Sentiment Shi...

Investing.com -- Kroger (NYSE:KR) shares moved slightly lower in market pre-open Thursday after the food and drug retailer missed analyst expectations for fourth-quarter revenue and issued a soft earnings outlook.

The company reported Q4 adjusted earnings per share (EPS) of $1.14, exceeding consensus estimates of $1.11.

Sales for the quarter totaled $34.31 billion, also below the $34.76 billion that analysts projected. Identical-store sales, excluding fuel, increased 2.4%, beating the forecast of 1.95%.

Operating profit for the quarter was $912 million, while adjusted FIFO operating profit reached $1.17 billion, ahead of the estimated $1.14 billion.

"I am excited to join this talented and experienced management team in my role as interim CEO. I am committed to ensuring that we execute with speed and that our teams continue to advance our go-to-market strategy to deliver for our customers, associates, communities, and shareholders," said Chairman and CEO Ron Sargent.

"We enter 2025 with positive momentum, focused on delivering an incredible customer experience through great quality at low prices," they added.

For the full year 2026, Kroger expects adjusted EPS between $4.60 and $4.80, missing the consensus estimate of $4.82.

Identical-store sales, excluding fuel, are projected to grow between 2% and 3%, compared to the estimated 2.11%.

The retailer forecasts capital expenditures between $3.6 billion and $3.8 billion, while analysts projected $3.82 billion.

Adjusted free cash flow is anticipated to be in the range of $2.8 billion to $3.0 billion, while adjusted FIFO operating profit is projected between $4.7 billion and $4.9 billion, in line with the $4.78 billion estimate.

Kroger also said it expects full-year net interest expense to be between $650 million and $675 million in 2025.

This article first appeared in Investing.com

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (“Kalkine Media, we or us”), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary.
The content published on Kalkine Media also includes feeds sourced from third-party providers. Kalkine does not assert any ownership rights over the content provided by these third-party sources. The inclusion of such feeds on the Website is for informational purposes only. Kalkine does not guarantee the accuracy, completeness, or reliability of the content obtained from third-party feeds. Furthermore, Kalkine Media shall not be held liable for any errors, omissions, or inaccuracies in the content obtained from third-party feeds, nor for any damages or losses arising from the use of such content.
Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyrighted to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have made reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
This disclaimer is subject to change without notice. Users are advised to review this disclaimer periodically for any updates or modifications.