Financial Data and Key Metrics Changes - Kroger achieved identical sales without fuel growth of 1.2% in Q2 2024, supported by positive customer metrics including increases in total and loyal households and customer visits [19][20] - Adjusted EPS was $0.93 per diluted share, a decline of 3% compared to last year [24] - FIFO gross margin rate, excluding fuel, was 22.6% of sales, reflecting a 42 basis points improvement from last year [23] Business Line Data and Key Metrics Changes - Digital sales grew 11%, with delivery solutions leading growth at 17% and pickup sales increasing by 10% [14][21] - Sales growth in Kroger's Our Brands products outpaced national brands, with over 90% of customer households purchasing Our Brands products [11][12] - The pharmacy segment's sales outpaced internal expectations, although profitability was impacted by product mix pressures [17] Market Data and Key Metrics Changes - The food-at-home industry remains competitive, with Kroger's model allowing for sustainable investments in value and competitive pricing [9] - Customers are increasingly purchasing lower-priced items and focusing on essentials, particularly budget-conscious consumers [7][8] Company Strategy and Development Direction - Kroger is focused on enhancing customer experience through affordable prices, personalized promotions, and a multi-tiered portfolio of products [6][8] - The company is committed to its Fresh for Everyone promise, ensuring quality and freshness through strong supplier relationships [10] - Kroger is optimistic about growth in health and wellness, leveraging its pharmacy business to enhance customer loyalty [16] Management's Comments on Operating Environment and Future Outlook - Management noted that customers are adjusting to economic pressures, with a focus on essentials and budget-friendly options [7][8] - The company expects to navigate economic uncertainty while maintaining its full-year guidance for identical sales growth [19][31] - Management expressed confidence in the merger with Albertsons, highlighting the complementary strengths of both organizations [33][34] Other Important Information - Kroger raised its quarterly dividend by 10%, marking the 18th consecutive year of dividend increases [30] - The company is committed to maintaining an investment-grade debt rating and has a net total debt-to-adjusted EBITDA ratio of 1.24 [28][29] Q&A Session All Questions and Answers Question: Concerns about competitive backdrop and promotions - Management noted that promotions are returning to normal levels post-COVID, with effective promotions supported by CPG partners [38] Question: Impact of digital on gross margin - Management indicated that digital sales growth, particularly in Our Brands, positively impacted gross margin, with expectations for continued improvement [41] Question: Expectations for P&L benefits and reinvestment - Management confirmed that margin enhancement programs and productivity improvements will be reinvested back into the business to drive long-term growth [46][47] Question: Market share trends and Fresh investments - Management reported stronger trends in Fresh compared to center store, with expectations for continued improvement [50] Question: Balancing inflation and customer appeal - Management emphasized the need to balance passing on inflation with maintaining affordability for budget-conscious consumers, expecting overall inflation to remain around 1% [66] Question: CapEx spending and EPS growth cadence - Management indicated that the increased CapEx reflects strong cash flow and operational efficiency, with EPS growth expected to be slightly ahead in Q3 and slightly behind in Q4 [69][72] Question: Sales growth challenges and nontraditional competitors - Management acknowledged the pressures from economic factors and nontraditional competitors, but noted that changes in consumer behavior could be beneficial for Kroger [85]

| --- | --- | --- | |-----------------------------------------------------|-------|-------| | | | | | | | | | | | | | Kroger Q2 2024 Earnings Release September 12, 2024 | | | | | | | Safe Harbor This presentation includes certain statements that constitute "forward-looking statements" about Kroger's financial position and expected performance, including our proposed transaction with Albertsons Companies. These statements are based on management's assumptions and beliefs in light of currently available infor ...

The Kroger Co. (KR) reported second-quarter fiscal 2024 results, with sales falling short of the Zacks Consensus Estimate and earnings beating the same. Although revenues grew year over year, earnings declined compared to the same period last year. Decent sales performance in the first two quarters gave management confidence to lift the lower end of the full-year identical sales without fuel view by 50 basis points.Kroger's well-defined customer segmentation strategy, emphasis on value and focus on its 'Our ...

U.S. stocks traded mixed midway through trading, with the Nasdaq Composite gaining more than 50 points on Thursday.The Dow traded down 0.11% to 40,814.73 while the NASDAQ rose 0.33% to 17,453.69. The S&P 500 also rose, gaining, 0.13% to 5,561.28.Check This Out: Wall Street’s Most Accurate Analysts Give Their Take On 3 Materials Stocks Delivering High-Dividend YieldsLeading and Lagging SectorsCommunication services shares rose by 1.2% on Thursday.In trading on Thursday, real estate shares dipped by 0.6%.Top ...

Key TakeawaysKroger shares surged Thursday after the supermarket chain better-than-expected adjusted profit for the second quarter.Diluted EPS and revenue missed analysts' consensus estimates.CEO Rodney McMullen said the chain is "confident in the facts and the strength of our position" as it fights the FTC's legal challenges to its $24.6 billion merger with Albertsons. Kroger (KR) shares surged Thursday after it better-than-expected adjusted profit for the second quarter. The supermarket chain posted adjus ...

Kroger (KR) came out with quarterly earnings of $0.93 per share, beating the Zacks Consensus Estimate of $0.92 per share. This compares to earnings of $0.96 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 1.09%. A quarter ago, it was expected that this supermarket chain would post earnings of $1.33 per share when it actually produced earnings of $1.43, delivering a surprise of 7.52%. Over the last four quarters, the company ha ...

Exhibit 99.1 Kroger Reports Second Quarter 2024 Results and Updates Full-Year Identical Sales Without Fuel Guidance Second Quarter Highlights · Identical Sales without fuel increased 1.2% · Operating Profit of $815 million; EPS of $0.64 · Adjusted FIFO Operating Profit of $984 million and Adjusted EPS of $0.93 · Achieved strong Adjusted Free Cash Flow · Executed its go-to-market strategy to deliver value for customers o Grew digital sales 11% o Increased total households, customer visits and loyal household ...

Second Quarter Highlights Identical Sales without fuel increased 1.2%Operating Profit of $815 million; EPS of $0.64Adjusted FIFO Operating Profit of $984 million and Adjusted EPS of $0.93Achieved strong Adjusted Free Cash FlowExecuted its go-to-market strategy to deliver value for customers Grew digital sales 11%Increased total households, customer visits and loyal households CINCINNATI, Sept. 12, 2024 /PRNewswire/ -- The Kroger Co. (NYSE: KR) today reported its second quarter 2024 results, reaffirmed guida ...

CINCINNATI, Sept. 11, 2024 /PRNewswire/ -- The Kroger Co. (NYSE:KR) (the "Company" or "Kroger") announced today that it has extended the expiration date of the previously announced offers to exchange (the "Exchange Offers") any and all outstanding notes (the "ACI Notes") of Albertsons Companies, Inc. (NYSE:ACI) ("ACI"), New Albertsons, L.P. ("NALP"), Safeway Inc. ("Safeway"), Albertson's LLC ("Albertsons"), Albertsons Safeway LLC ("ASL") and American Stores Company, LLC ("ASC"), as applicable, for up to $7, ...

HOUSTON, TEXAS - SEPTEMBER 09: A customer exits a Kroger grocery store on September 09, 2022 in ... [+] Houston, Texas. Kroger stock increased six percent as the company surpassed profit and sales expectations. (Photo by Brandon Bell/Getty Images) Getty Images Kroger is scheduled to report earnings before Thursday's open. The stock hit a record high of $62.78/share in 2022 and is currently trading near $52. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are str ...