Kroger cuts sales-growth guidance but maintains earnings outlook

Kroger ($KR) reduced its full-year identical-sales growth forecast, excluding fuel, to 0.2–0.8% from 1–2%. The revised range includes an approximately 1.4-percentage-point headwind from the Inflation Reduction Act. Second-quarter sales reached $34.6 billion, compared with $33.9 billion a year earlier, while identical sales excluding fuel increased just 0.2%.

Profit expectations held up better than the sales outlook. Adjusted quarterly earnings rose to $1.09 per share from $1.04, and management maintained full-year adjusted earnings guidance of $5.10–5.30 per share. It also retained its $2.7–2.9 billion free-cash-flow forecast. The update therefore combines weaker expected underlying sales growth with unchanged annual profit and cash-flow targets, rather than a broad-based guidance upgrade.

Sources:

• Kroger — quarterly results, PR Newswire