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]

Core Insights - Kroger reported strong second quarter results for 2025, highlighting progress in organizational simplification, customer experience improvement, and value creation focus [2][12][13] Financial Performance - Identical sales without fuel increased by 3.4% compared to 1.2% in the same quarter last year [11][32] - Earnings per share (EPS) rose to $0.91 from $0.64 year-over-year, while adjusted EPS increased to $1.04 from $0.93 [2][11] - Operating profit reached $863 million, up from $815 million in the previous year [2][42] - Total company sales remained stable at $33.9 billion, with a 3.8% increase when excluding fuel and Kroger Specialty Pharmacy sales [3][11] Gross Margin and Profitability - Gross margin improved to 22.5% from 22.1% year-over-year, driven by lower supply chain costs and the sale of Kroger Specialty Pharmacy [4][5] - FIFO gross margin rate increased by 39 basis points, while the Operating, General and Administrative (OG&A) rate decreased by 5 basis points [5][6] Capital Allocation and Debt Management - Kroger plans to maintain strong free cash flow and continue investing in the business, with a commitment to increasing dividends over time [7] - The company entered a $5 billion accelerated share repurchase program, expected to be completed in fiscal third quarter 2025 [8] - 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 [9][33] Guidance Updates - Full-year 2025 guidance for identical sales without fuel has been raised to a range of 2.7% to 3.4% [10][13] - Operating profit guidance is now set at $4.8 to $4.9 billion, and EPS guidance is adjusted to $4.70 to $4.80 [10][13]

Company Overview - The Kroger Co. operates as a food and drug retailer with a market cap of $44.7 billion, making it one of the largest food retailers globally [1][2] Stock Performance - Kroger's stock reached an all-time high of $74.90 on August 11 and is currently trading 10.5% below that peak [3] - Over the past three months, KR stock has gained 2.5%, underperforming the Dow Jones Industrial Average's 6.1% gains during the same period [3] - Year-to-date, KR stock prices have surged 9.6% and 28.2% over the past 52 weeks, outperforming the Dow's 6.9% gains in 2025 and 11.7% returns over the past year [4] Financial Results - Following the release of Q1 results on June 20, Kroger's stock prices soared 9.8% in a single trading session [5] - The company reported sales of $45.1 billion for the quarter, slightly below Street expectations, with a 3.7% increase in sales excluding fuel and other adjustments compared to the previous year [5] - Adjusted EPS grew 4.2% year-over-year to $1.49, surpassing consensus estimates [5] Competitive Position - Kroger has outperformed its peer, Sprouts Farmers Market, Inc., which gained 5.5% in 2025 but underperformed SFM's 32.1% surge over the past year [6] - Among 21 analysts covering KR stock, the consensus rating is a "Moderate Buy," with a mean price target of $77.26, indicating a 15.3% upside potential from current price levels [6]

Earnings Reports - Kroger Co. is expected to report quarterly earnings of $0.99 per share on revenue of $34.10 billion [2] - Aviat Networks Inc. reported quarterly earnings of $0.83 per share, exceeding the analyst consensus estimate of $0.47 per share, with quarterly sales of $115.340 million, surpassing the estimate of $114.667 million [2] - RH is anticipated to post quarterly earnings of $3.20 per share on revenue of $904.64 million [2] - Oxford Industries Inc. reported quarterly earnings of $1.26 per share, beating the estimate of $1.18, but quarterly revenue of $403.14 million fell short of the consensus estimate of $410.850 million [2] - Adobe Inc. is expected to report quarterly earnings of $5.18 per share on revenue of $5.91 billion [2] Stock Performance - Kroger shares increased by 0.7% to $67.51 in after-hours trading [2] - Aviat Networks shares rose by 4.7% to $23.75 in after-hours trading [2] - RH shares gained 0.4% to $229.90 in after-hours trading [2] - Oxford Industries shares jumped 16.7% to $47.16 in after-hours trading [2] - Adobe shares increased by 0.4% to $351.45 in after-hours trading [2]

The Kroger Co. KR will release earnings results for the second quarter before the opening bell on Thursday, Sept. 11.Analysts expect the company to report quarterly earnings at $1.00 per share, up from 93 cents per share in the year-ago period. Kroger projects to report quarterly revenue at $34.15 billion, compared to $33.91 billion a year earlier, according to data from Benzinga Pro.KR is biding its time at current levels. See the market dynamics here.On Aug. 20, JP Morgan analyst Thomas Palmer downgraded ...

Group 1 - Kroger Co. is highlighted in Jim Cramer's game plan, with a positive earnings forecast due to its ability to keep prices down for consumers [1] - Cramer expresses a preference for Costco and Walmart but acknowledges that Kroger can rally on good earnings numbers [1] - The stock has recently shown a downward trend, dropping from 73 to 64, prompting Cramer to suggest waiting for a potential buy at 60 [2] Group 2 - Kroger operates in the retail sector, providing groceries, pharmaceuticals, general merchandise, and fuel, while also manufacturing and processing food products [2] - Despite acknowledging Kroger's potential, there is a belief that certain AI stocks may offer greater upside potential and less downside risk [2]