Kroger Stock Rises on Strong Quarterly Results & Updated Sales Forecast

With strong quarterly results, retailer Kroger lifted market sentiment on Thursday, leading to a noticeable rise in its stock price.

The retail chain Kroger reported unexpectedly strong figures for the past quarter on Thursday. The company posted an adjusted earnings per share of $0.93, slightly surpassing the average analyst estimate of $0.91. Sales, excluding fuel, increased by 1.3% year-over-year to $33.91 billion, slightly below the forecast of $34.08 billion expected by experts.

Kroger Raises Sales Forecast

In response to the results, Kroger raised the lower end of its full-year sales forecast. Initially, the company projected sales growth in the range of 0.50% to 1.75%, but now it expects growth between 0.75% and 1.75%—again, excluding fuel sales.

“Our long-term model is to consistently invest in lowering prices so that more customers shop with us. This drives our alternative profit model and enhances our efficiency. This cycle allows Kroger to deliver exceptional value to customers while also investing in our associates,” said CEO Rodney McMullen. By doing so, Kroger is well-positioned to generate attractive and sustainable returns for shareholders.

Kroger Stock Gains

Investors responded positively to the quarterly results, with Kroger stock rising 7.18% during the trading day. Over the year, the stock has gained 16%, although it has lost around 5% over the past six months.

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