About this content About Sean Mason Sean Mason is a Senior Journalist at Proactive, having researched and written about Canadian and US equities for 20 years. Sean graduated from the University of Toronto with a BA in history and economics and has also passed the Canadian Securities Course. He previously worked at Investors Digest of Canada, Stockhouse, and SmallCapPower.com. Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and action ...

Core Viewpoint - Kroger's stock experienced a rally following another earnings beat and an increased outlook for the company [1] Group 1 - The company reported better-than-expected earnings, contributing to the positive stock performance [1] - An optimistic outlook was provided, indicating confidence in future performance [1]

Core Insights - Kroger Company (KR.US) reported Q2 2025 earnings per share of $0.91, significantly up from $0.64 year-over-year, and raised its full-year guidance due to better-than-expected performance [1] - The company's non-fuel sales increased by 3.4% year-over-year, a notable improvement from 1.2% in the same period last year, while total sales remained flat at $33.9 billion [1] - Operating profit rose from $815 million in the previous year to $863 million, with adjusted earnings per share reaching $1.04, surpassing $0.93 from Q2 2024 [1] Financial Performance - E-commerce sales grew by 16%, and gross margin improved from 22.1% to 22.5%, driven by better pharmacy sales, reduced supply chain costs, and lower shrinkage [1] - Kroger updated its 2025 performance guidance, raising the non-fuel same-store sales growth forecast from 2.25%-3.25% to 2.7%-3.4%, operating profit expectations from $4.7 billion-$4.9 billion to $4.8 billion-$4.9 billion, and earnings per share from $4.60-$4.80 to $4.70-$4.80 [1] Strategic Initiatives - The company is advancing a $5 billion accelerated stock repurchase program, expected to be completed in Q3, with plans to resume open market repurchases based on the remaining $2.5 billion authorization [2] - Despite concerns over consumer demand due to tariff pressures, Kroger has raised its annual core sales forecast, anticipating strong demand for its low-priced products [2] Market Position - In the current trend where consumers, especially low-income groups, are shifting towards value essentials, Kroger, along with Albertsons and Walmart, has demonstrated strong market resilience against overall industry slowdowns [2]

格隆汇9月11日｜杂货连锁店克罗格上调全年同店销售增长指引，目前预计将增长2.7%-3.4%，而之前预 期为2.25%-3.25%；将调整后每股收益指引从4.6-4.8美元上调至4.7-4.8美元之间。克罗格首席财务官 David Kennerley表示，在药房、电子商务和生鲜业务的带动下，公司销售额增长强劲，我们对杂货销量 的改善感到鼓舞。 ...

Economic Indicators - The US Consumer Price Index (CPI) for August increased by 0.4% month-over-month, surpassing the expected 0.3% and up from July's 0.2% [2][3] - Year-over-year, the headline CPI was reported at 2.9%, meeting expectations and showing a slight increase from the previous 2.7% [2] - Core CPI, excluding food and energy, remained steady at 0.3% month-over-month and 3.1% year-over-year, consistent with forecasts [3] European Central Bank (ECB) Updates - The ECB decided to maintain its key interest rates, with the Deposit Facility Rate at 2.00%, the Main Refinancing Rate at 2.15%, and the Marginal Lending Facility at 2.40% [4] - The ECB raised its inflation outlook for 2025 and 2026 while slightly lowering it for 2027, indicating a more persistent inflationary environment [5] - The GDP growth forecast for the Eurozone in 2025 was revised upwards to 1.2% from 0.9%, while the 2026 forecast was trimmed to 1.0% from 1.1% [5] Company Performance - Kroger reported second-quarter 2025 earnings with adjusted EPS of $1.04, exceeding the estimated $1.00, despite slightly missing revenue expectations with sales of $33.98 billion [6][7] - Identical-store sales excluding fuel grew by 3.4%, significantly above the estimated 2.8% [7] - Kroger narrowed its full-year adjusted EPS guidance to $4.70 to $4.80, raising the lower end of its forecast [7] Oil Market Insights - OPEC maintained its forecasts for global oil demand growth at 1.29 million barrels per day (bpd) for 2025 and 1.38 million bpd for 2026 [10] - Crude output averaged 42.40 million bpd in August, an increase of 509,000 bpd from July, following an OPEC+ production hike [11]

Kroger raised its full-year sales forecast, illustrating that the grocer is attracting value-seeking consumers who are opting to eat at home https://t.co/jVO3TOarEz ...

Group 1 - The second quarter earnings season is concluding with mostly positive results, as nearly all S&P 500 companies have reported [1] - As of September 5, 99% of S&P 500 index companies have reported results, with analysts expecting a 12% increase in earnings per share for the second quarter [1] - Analysts had initially projected a 5% rise in S&P 500 earnings for Q2, marking the slowest growth pace since Q4 2023, influenced by factors such as tariffs and economic uncertainty [2] Group 2 - Recent earnings reports are coming in from notable companies including Oracle, Synopsys, Rubrik, SailPoint, GameStop, Chewy, Adobe, and Kroger [2]

Sales Performance - Identical sales without fuel increased by 3.4% in Q2 2025 compared to 1.2% in Q2 2024[3] - Total company sales were $33.9 billion, unchanged from the same period last year, but excluding fuel and Kroger Specialty Pharmacy, sales increased by 3.8%[6] - eCommerce sales grew by 16% in the second quarter[5] - Total sales for Q2 2025 reached $33,940 million, a slight increase from $33,912 million in Q2 2024[26] - Excluding fuel, the second quarter sales for 2025 reached $30,019 million, a 3.4% increase from $29,019 million in 2024[40] - Year-to-date sales excluding fuel for 2025 were $69,785 million, compared to $67,554 million in 2024, reflecting a growth of 3.3%[40] - Year-to-date sales for 2025 reached $79,058 million, a slight decrease from $79,181 million in the same period of 2024[58] Financial Performance - Operating profit reached $863 million, with adjusted EPS of $1.04, up from $0.93 in the previous year[5] - Operating profit for Q2 2025 was $863 million, compared to $815 million in Q2 2024, reflecting a 5.9% increase[26] - Net earnings attributable to The Kroger Co. for Q2 2025 were $609 million, up from $466 million in Q2 2024, representing a 30.6% increase[26] - Adjusted FIFO operating profit for the year-to-date 2025 was $2,610 million, compared to $2,483 million in 2024, reflecting a 5.1% increase[55] - Net earnings per diluted share for the second quarter of 2025 were $0.91, compared to $0.64 in 2024, representing a 42.2% increase[47] - Gross profit for Q2 2025 was $7,646 million, compared to $7,499 million in Q2 2024, reflecting an increase of 1.97%[58] - Year-to-date gross profit increased to $18,002 million in 2025, compared to $17,440 million in 2024, marking a growth of 3.22%[58] Margins and Costs - Gross margin improved to 22.5% from 22.1% year-over-year, primarily due to lower supply chain costs and the sale of Kroger Specialty Pharmacy[7] - The company reported a FIFO gross margin of 23.0% for Q2 2025, compared to 22.6% in Q2 2024[30] - Year-to-date gross margin improved to 22.8% in 2025 from 22.0% in 2024[58] - Merchandise costs, including advertising and warehousing, were $26,130 million in Q2 2025, down from $26,261 million in Q2 2024[58] - Rent expenses decreased to $13 million in Q2 2025 from $17 million in Q2 2024[58] - Depreciation and amortization increased to $151 million in Q2 2025 from $135 million in Q2 2024[58] Debt and Shareholder Returns - Kroger's net total debt to adjusted EBITDA ratio increased to 1.63 from 1.24 a year ago, with a target range of 2.30 to 2.50[12] - The company is committed to a $5 billion accelerated share repurchase program, expected to be completed in Q3 2025[11] - Kroger expects to maintain its quarterly dividend and increase it over time, subject to board approval[10] - The total common shares outstanding at the end of the period decreased to 662 million in 2025 from 723 million in 2024[33] - Total debt rose to $17,959 million in 2025, up from $12,230 million in 2024, an increase of $5,729 million[43] - The current portion of long-term debt increased to $827 million in 2025 from $196 million in 2024, a change of $631 million[43] Guidance and Future Outlook - The company raised its full-year guidance for identical sales without fuel to a range of 2.7% to 3.4%[16] - Adjusted FIFO operating profit guidance was increased to $4.8 to $4.9 billion for FY25[16] - The company continues to focus on operational effectiveness by evaluating rent and depreciation in its gross margin calculations[56]

U.S. grocer Kroger raised its annual core sales forecast on Thursday, banking on resilient demand for its lower-priced products amid growing concerns over tariff-related pressure on consumer demand. ...

Group 1: Company Performance - Kroger raised its annual core sales forecast, anticipating resilient demand for lower-priced products amid tariff-related consumer demand concerns [1][4] - The company reported a 3.4% increase in quarterly identical sales, surpassing analysts' estimates of 2.84% [4] - Adjusted earnings per share for the quarter were $1.04, exceeding estimates of 99 cents [4] Group 2: Market Trends - Retailers like Kroger are experiencing growth despite a broader industry slowdown, as consumers from lower-income households seek value through cheaper essentials [2] - The company has focused on promotions and maintaining low prices, having reduced prices on over 2,000 products this year [3] Group 3: Financial Outlook - Kroger expects full-year comparable sales to rise between 2.7% and 3.4%, an increase from the previous forecast of 2.25% to 3.25% [4] - The lower end of the annual profit forecast was raised to $4.70 from $4.60, while the upper end remains at $4.80 [4] Group 4: Legal Issues - Kroger is currently involved in a legal battle with Albertsons following the blockage of their $25 billion deal by a U.S. judge [5]