Kroger has revised its guidance, attributing it to a decline in food inflation and broader economic pressures. The company now expects full-year same-store sales, excluding fuel, to be in the range of 0.6% to 1%, compared to the previous range of 1% to 2% communicated in September.
As a result of this news, the stock fell by 1.3% during premarket trading on Thursday. Year-to-date, the stock is down by 2.11%.
While the official inflation rate has significantly slowed since its peak of 9% last year, with the consumer price index rising 3.2% in October compared to 3.7% in September, this poses a challenge for stores like Kroger to maintain profit margins.
For the fiscal year ending in January, Kroger now projects earnings of $4.50 to $4.60 per share, updating its previous guidance range of $4.45 to $4.60 per share.
In the fiscal third quarter, Kroger reported adjusted earnings of 95 cents per share, surpassing the consensus estimate of 91 cents per share tracked by FactSet. The company’s sales for the quarter ended in October were $34 billion, meeting expectations. Same-store sales in the period declined by 0.6%, excluding the impact of fuel, in line with forecasts.
It remains to be seen how Kroger will navigate these challenges in the coming months.
TechBerry
Happy Galaxy
Forex Cyborg
Forex Fury
FXgoodway