Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The company focuses on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - Proactive's news team delivers insights across various sectors including biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive employs technology to enhance workflows and has a forward-looking approach to technology adoption [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Group 1 - Kroger reported quarterly earnings of $1.49 per share, exceeding the Zacks Consensus Estimate of $1.45 per share, and showing an increase from $1.43 per share a year ago, representing an earnings surprise of 2.76% [1] - The company posted revenues of $45.12 billion for the quarter ended April 2025, which was 0.58% below the Zacks Consensus Estimate and a decrease from $45.27 billion year-over-year [2] - Kroger has surpassed consensus EPS estimates three times over the last four quarters, but has not beaten consensus revenue estimates during the same period [2] Group 2 - The stock has gained approximately 7.2% since the beginning of the year, outperforming the S&P 500's gain of 1.7% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.02 on revenues of $34.13 billion, and for the current fiscal year, it is $4.74 on revenues of $149.07 billion [7] Group 3 - The estimate revisions trend for Kroger is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] - The Retail - Supermarkets industry is currently in the top 40% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8]

Group 1 - Kroger's latest quarterly sales exceeded expectations, indicating that consumers continue to purchase essential goods even during economic turmoil [1] - The company's same-store sales growth, excluding fuel, was 3.2%, outperforming Wall Street analysts' expectations [1] - Kroger raised its full-year sales forecast to a range of 2.25%-3.25% but maintained other financial guidance unchanged [1] Group 2 - Kroger reported Q1 revenue of $45.12 billion, a year-over-year decline of 0.4%, which was below market expectations [1] - The non-GAAP earnings per share were $1.49, higher than the market expectation of $1.52 [1] - The CFO stated that despite the strong performance, macroeconomic uncertainties remain, leading to unchanged performance guidance [1] Group 3 - Kroger plans to close approximately 60 stores over the next 18 months, which will result in a $100 million impairment charge [1] - The company's stock has risen 7.2% year-to-date, outperforming the S&P 500 index [1] Group 4 - Consumers are increasingly focused on value, opting for promotional or lower-priced products, while some consumer confidence indicators remain weak [2] - The impact of President Trump's tariff policies has reignited concerns over inflation [2] - Kroger is in need of new growth points following the failed merger with Albertsons and the departure of its long-serving CEO [2] Group 5 - Other retailers, like Walmart, have maintained their full-year sales and profit forecasts but have refrained from providing guidance for the current quarter [3] - Target, which relies more on apparel and general merchandise sales, has lowered its sales expectations [3] Group 6 - Overall, food inflation has eased since reaching a 40-year peak in 2022, but prices for certain categories continue to rise [4] - The CEO of Albertsons noted that cocoa, coffee, cooking oil, and certain cuts of beef are becoming increasingly expensive [4]

Financial Performance - GAAP Operating Profit was $1,322 million[5], while Adjusted FIFO Operating Profit reached $1,518 million[5] - GAAP EPS stood at $1.29[5], with Adjusted EPS showing a 4% growth[5] - Digital sales increased by 15% year-over-year, driven by strong delivery demand[6] Sales and Profitability - Identical Sales (excluding fuel) grew by 3.2%[5] - The company's Our Brands business accounts for approximately $37 billion in sales[14], and the eCommerce business generates around $14 billion[14] - Gross margin increased to 23% compared to 22% in the previous year[44] Guidance and Outlook - The company anticipates Identical Sales growth (excluding fuel) of 2.25% to 3.25% for the full year 2025[9] - The company projects Operating Profit to be in the range of $4.7 billion to $4.9 billion for fiscal year 2025[9] - Free Cash Flow is expected to be between $2.8 billion and $3.0 billion for the year[9]

Sales Performance - Identical sales without fuel increased by 3.2% in Q1 2025 compared to Q1 2024[7] - Total company sales were $45.1 billion in Q1 2025, a decrease from $45.3 billion in Q1 2024, with a 3.7% increase excluding fuel and adjustment items[8] - Identical sales excluding fuel rose to $39,766 million in the first quarter of 2025, up 3.2% from $38,535 million in the same period of 2024[45] - eCommerce sales increased by 15% in Q1 2025[7] - Sales for Q1 2025 were $45,118 million, a slight decrease from $45,269 million in Q1 2024, representing a decline of approximately 0.3%[62] Profitability - Operating profit for Q1 2025 was $1,322 million, with adjusted FIFO operating profit at $1,518 million[6] - Adjusted EPS for Q1 2025 was $1.49, up from $1.43 in Q1 2024[6] - Gross profit for Q1 2025 reached $10,356 million, compared to $9,941 million in Q1 2024, marking an increase of about 4.2%[62] - Adjusted FIFO operating profit for Q1 2025 was $1,518 million, compared to $1,499 million in Q1 2024, indicating an increase of about 1.3%[58] - Operating profit for Q1 2025 was $1,322 million, slightly up from $1,294 million in Q1 2024, representing an increase of approximately 2.2%[58] Financial Guidance and Projections - Full-year 2025 guidance for identical sales without fuel has been updated to a range of 2.25% to 3.25%[17] - Adjusted free cash flow is projected to be between $2.8 billion and $3.0 billion for 2025[21] Debt and Liabilities - Kroger's net total debt to adjusted EBITDA ratio increased to 1.69 from 1.25 a year ago, with a target range of 2.30 to 2.50[16] - Total liabilities increased to $44,340 million in 2025 from $39,166 million in 2024, marking an increase of 13.2%[39] - Net total debt rose to $13,547 million in 2025, up 39.4% from $9,718 million in 2024[48] - Long-term debt, including obligations under finance leases, increased to $17,138 million in 2025 from $12,021 million in 2024, a rise of 42.5%[48] Cash Flow and Assets - Cash and temporary cash investments at the end of the period were $4,738 million, up from $2,863 million in 2024, reflecting a significant increase of 65.5%[41] - The net cash provided by operating activities was $2,149 million in 2025, down from $2,342 million in 2024, a decrease of 8.2%[41] - Total current assets increased to $15,765 million in 2025 from $14,163 million in 2024, representing an increase of 11.3%[39] Store Closures - Kroger plans to close approximately 60 stores over the next 18 months, recognizing a $100 million impairment charge, but expects a modest financial benefit from these closures[13] Shareholder Information - The total common shares outstanding decreased to 661 million at the end of the period in 2025 from 722 million in 2024, a reduction of 8.5%[39] - The average number of common shares used in diluted calculation decreased to 664 million in Q1 2025 from 727 million in Q1 2024[52] Earnings - Net earnings including noncontrolling interests decreased to $868 million in 2025 from $956 million in 2024, a decline of 9.2%[41] - Net earnings attributable to The Kroger Co. for Q1 2025 were $866 million, down from $947 million in Q1 2024, reflecting a decrease of approximately 8.5%[52] - Adjusted net earnings excluding adjustment items for Q1 2025 were $996 million, compared to $1,047 million in Q1 2024, indicating a decline of about 4.9%[52] Margins - Gross margin improved to 23.0% in Q1 2025 from 22.0% in Q1 2024, primarily due to the sale of Kroger Specialty Pharmacy[9] - Gross margin improved to 23.0% in Q1 2025, up from 22.0% in Q1 2024, reflecting a year-over-year increase of 1 percentage point[62]

Core Insights - Kroger reported solid first quarter results for 2025, with strong sales driven by pharmacy, eCommerce, and fresh products [2][3] - The company is focused on streamlining priorities and enhancing customer experience, which positions it well for future growth [3] Financial Performance - Identical sales without fuel increased by 3.2% compared to the previous year, while total company sales were $45.1 billion, slightly down from $45.3 billion [4][13] - Earnings per share (EPS) remained stable at $1.29, while adjusted EPS rose to $1.49 from $1.43 [3][4] - Operating profit for the quarter was $1,322 million, an increase from $1,294 million in the same period last year [4][46] - Gross margin improved to 23.0%, up from 22.0% year-over-year, primarily due to the sale of Kroger Specialty Pharmacy and lower supply chain costs [5][48] Operational Highlights - The FIFO gross margin rate increased by 79 basis points, attributed to the sale of Kroger Specialty Pharmacy and lower shrink [6][47] - The Operating, General and Administrative (OG&A) rate increased by 63 basis points, mainly due to the sale of Kroger Specialty Pharmacy and pension plan contributions [7] Strategic Initiatives - Kroger recognized a $100 million impairment charge related to the planned closure of approximately 60 stores, expecting modest financial benefits from these closures [8] - The company is committed to reinvesting savings from store closures into enhancing customer experience [8] Capital Allocation - Kroger anticipates strong free cash flow and plans to continue investing in the business while maintaining its investment-grade debt rating [9] - The company has initiated a $5 billion accelerated share repurchase program, expected to be completed by the third quarter of fiscal 2025 [10] Debt and Financial Ratios - Kroger's net total debt to adjusted EBITDA ratio is 1.69, up from 1.25 a year ago, with a target range of 2.30 to 2.50 [11][39] - The company maintains a strong balance sheet, providing opportunities for further investments and enhancing shareholder value [11] Guidance - The company raised its guidance for identical sales without fuel to a new range of 2.25% to 3.25% for the full year [14][17] - eCommerce sales saw a significant increase of 15% in the first quarter [13]

Core Viewpoint - Kroger Co. is expected to report a slight increase in revenue and earnings for the first quarter of fiscal 2025, with revenues projected at $45.38 billion, reflecting a 0.3% year-over-year growth, and earnings per share (EPS) estimated at $1.45, indicating a 1.4% increase from the previous year [1][2][7]. Revenue Estimates - The Zacks Consensus Estimate for first-quarter revenues is $45.38 billion, which is a marginal increase of 0.3% compared to the prior year's figure of $45.27 billion [3][7]. - For the current fiscal year, the revenue estimate is $149.07 billion, with a projected growth of 1.33% year-over-year [3]. Earnings Estimates - The Zacks Consensus Estimate for first-quarter EPS is $1.45, which represents a year-over-year increase of 1.4% from $1.43 [4][7]. - The current year EPS estimate stands at $4.74, with a growth projection of 6.04% for the next year [4]. Key Growth Drivers - Growth in private-label brands, digital sales, and media income are expected to support Kroger's top line [7]. - The company's focus on customer-centric strategies, particularly through its "Our Brands" portfolio, has enhanced customer engagement and loyalty [8]. - Digital sales surpassed $13 billion in fiscal 2024, indicating a strong trend that is likely to continue into the first quarter [9]. - Kroger's alternative profit businesses, including Kroger Precision Marketing, have contributed to a more diversified revenue base [10]. Market Performance - Kroger's stock has increased by 30.3% over the past year, outperforming Dollar General but trailing Walmart and Costco [12]. - The company's stock performance is compared to industry peers, with Kroger trading at a forward P/E ratio of 13.38, which is lower than the industry average of 31.95 [13][15]. Challenges - The retail environment remains challenging due to inflation, high interest rates, and changing consumer behavior, which may limit overall sales momentum [11]. - Kroger's fuel operations are projected to decline, with supermarket fuel sales expected to fall by 5.8% year-over-year [11]. - The termination of the Albertsons merger has resulted in $5.8 billion in new debt, increasing projected interest expenses for 2025 [11].

Group 1 - U.S. senators are questioning Kroger and Walmart regarding the impact of tariffs on their operations [1] - The inquiry focuses on how tariffs affect pricing and supply chain dynamics for these major retailers [1] - The discussions highlight the broader implications of trade policies on consumer goods and retail pricing strategies [1]

Group 1 - Kroger is set to announce its fiscal first-quarter earnings on June 20, 2025, with analysts expecting earnings of $1.46 per share and revenue of $45.3 billion, indicating a 12% year-over-year increase in earnings while sales growth remains flat [2] - In FY 2024, Kroger's same-store sales increased by 1.5%, and gross margin improved by 50 basis points to 22.3%, although adjusted EPS fell by 6% [3] - The company has a market capitalization of $44 billion, generated $147 billion in revenue over the last twelve months, and reported $3.8 billion in operating profits and $2.7 billion in net income [4] Group 2 - Historical trends indicate that Kroger's stock has risen 55% of the time after earnings announcements, with a median increase of 5.4% in one day [2][6] - The percentage of positive one-day returns post-earnings increases to 64% when analyzing data from the past three years, with a median of 5.4% for positive returns and -3.0% for negative returns [6][8] - The company plans to mitigate risks from trade tensions and tariffs by diversifying suppliers and optimizing its supply chain, although the recent departure of CEO Rodney McMullen may complicate these efforts [4]

The Kroger Co. KR will release its first-quarter financial results before the opening bell on Friday, June 20.Analysts expect the Cincinnati, Ohio-based company to report quarterly earnings at $1.46 per share, up from $1.43 per share in the year-ago period. Kroger projects quarterly revenue of $45.31 billion, compared to $45.27 billion a year earlier, according to data from Benzinga Pro.On March 6, the company reported fourth-quarter adjusted earnings per share of $1.14, beating the street view of $1.11. Qu ...