Kroger Lifts Full-Year Outlook As Q2 Earnings Top Estimates

Core Insights - Kroger Co. reported second-quarter earnings that surpassed analyst expectations, driven by strong identical store sales and margin expansion [1] - The company raised its full-year guidance following the positive earnings report [1] Financial Performance - Adjusted earnings were $1.04 per share, exceeding the consensus estimate of $0.99 [1] - Revenue for the quarter was $33.9 billion, slightly below the expected $34.05 billion [1] - Identical sales without fuel increased by 3.4% year-over-year, compared to a 1.2% growth in the previous year [1] Margin and Sales Growth - Gross margin improved to 22.5%, up from 22.1%, supported by the sale of Kroger Specialty Pharmacy, lower supply chain costs, and reduced shrink [2] - E-commerce sales experienced a growth of 16% during the quarter [2] Future Outlook - The company raised its full-year identical sales outlook to a range of 2.7%-3.4%, up from the previous range of 2.25%-3.25% [3] - Adjusted operating profit is now forecasted at $4.8-$4.9 billion, an increase from the prior forecast of $4.7-$4.9 billion [3] - Full-year adjusted EPS guidance was updated to $4.70-$4.80, compared to the earlier range of $4.60-$4.80, with the midpoint of $4.75 slightly below the analyst consensus of $4.78 [3]