Latest news with #salesgrowth
CTV News
2 hours ago
- Business
- CTV News
Kroger lifts annual sales target on resilient grocery demand
This file photo shows bagged purchases from the Kroger grocery store. (AP Photo/Rogelio V. Solis, File) Kroger bumped up its annual same-store sales forecast on Friday, betting on strong grocery demand to offset reduced discretionary spending as American consumers grapple with tariff-driven economic uncertainty. U.S. President Donald Trump's sweeping tariff policy has rattled global markets, raising fears of persistent inflation in the United States due to impending price hikes on imported goods. Most other retailers have either lowered or withdrawn their financial targets for the year. While Kroger raised its target for full-year 2025 identical sales growth to 2.25 to 3.25 per cent, from two to three per cent expected earlier, the company maintained its annual profit forecast, with new CFO David Kennerley noting in a statement that the macroeconomic environment remained uncertain. Bellwether Walmart also maintained its annual profit forecast, while Target cut its sales guidance for the year. Kroger has invested in sprucing up its curbside pickups as well as its more affordable private label brands as it battles stiff competition from Walmart. It has also benefited from an uptick in its pharmacy business, driven by the popularity of GLP-1 weight-loss drugs. Kroger's top brass has undergone a shakeup in recent months, with longtime CEO Rodney McMullen resigning following an investigation into his personal conduct. Kennerley, a former PepsiCo executive, also began his tenure as finance chief at the grocer in April. Kroger reported a first-quarter identical sales growth of 3.2 per cent, beating analysts' average expectation of 2.4 per cent, according to estimates compiled by LSEG. The grocer's gross margin was 23 per cent of sales for the quarter ended May 24, compared with 22 per cent a year ago. Its shares were down marginally in premarket trading. They have risen about seven per cent so far this year. (Reporting by Juveria Tabassum in Bengaluru; Editing by Pooja Desai)
Yahoo
3 hours ago
- Business
- Yahoo
Kroger Tops Profit Estimates, Sales Fall Short in 'Uncertain' Environment
Kroger (KR) reported fiscal first-quarter profits and identical sales growth that came in above analysts' projections Friday, but revenue fell short. The company reported adjusted earnings per share (EPS) of $1.49 on revenue that edged lower year-over-year to $45.12 billion. Analysts surveyed by Visible Alpha had forecast $1.45 and $45.21 billion, respectively. Kroger's identical sales excluding fuel rose 3.2%, better than the 2.3% increase that analysts had projected. "While first quarter sales and profitability exceeded our expectations, the macroeconomic environment remains uncertain and as a result other elements of our guidance remain unchanged," CFO David Kennerley said. Kroger did not give an update on its search for a new CEO, after its previous leader, Rodney McMullen, abruptly resigned days before last quarter's report following a company investigation into alleged misconduct. The retailer lifted its identical sales growth forecast for the full year to 2.25% to 3.25%, and affirmed the rest of its full-year projections. Last quarter, Kroger said it expected fiscal 2025 identical sales growth without fuel of 2% to 3% and adjusted EPS of $4.60 to $4.80. Kroger shares were little changed immediately after Friday's report. They entered the day up about 7% since the start of the year. Friday's report is Kroger's second since its proposed merger with Albertsons Companies (ACI) was called off after a judge ruled against it. The companies have since been entwined in legal fights, each accusing the other of violating their agreement. Read the original article on Investopedia Sign in to access your portfolio
Yahoo
4 hours ago
- Business
- Yahoo
Kroger lifts annual sales target on resilient demand for groceries
(Reuters) -Kroger (KR) raised its annual identical sales forecast on Friday, betting on robust demand for groceries at its stores even as consumers deal with still-high inflation. Demand for essentials and groceries has remained stable despite Americans pulling back on discretionary purchases, helping supermarket chains such as Kroger. Most other retailers have tempered their expectations for the year. Kroger has also invested in sprucing up its curbside pick-ups as well as its more affordable private label brands as it battles stiff competition from retail bellwether Walmart (WMT). Still, Kroger maintained its annual earnings per share forecast, with new CFO David Kennerley noting in a statement that the macroeconomic environment remained uncertain. The company expects full-year 2025 identical sales growth of 2.25% to 3.25%, compared with its prior target of 2% to 3% growth. Kroger reported first-quarter identical sales growth of 3.2%, beating analysts' average expectation of 2.4%, according to estimates compiled by LSEG. The grocer's shares were down marginally in premarket trading. They have risen about 7% so far this year. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Sign in to access your portfolio
Reuters
4 hours ago
- Business
- Reuters
Kroger lifts annual sales target on resilient demand for groceries
June 20 (Reuters) - Kroger (KR.N), opens new tab raised its annual identical sales forecast on Friday, betting on robust demand for groceries at its stores even as consumers deal with still-high inflation. Demand for essentials and groceries has remained stable despite Americans pulling back on discretionary purchases, helping supermarket chains such as Kroger. Most other retailers have tempered their expectations for the year. Kroger has also invested in sprucing up its curbside pick-ups as well as its more affordable private label brands as it battles stiff competition from retail bellwether Walmart (WMT.N), opens new tab. Still, Kroger maintained its annual earnings per share forecast, with new CFO David Kennerley noting in a statement that the macroeconomic environment remained uncertain. The company expects full-year 2025 identical sales growth of 2.25% to 3.25%, compared with its prior target of 2% to 3% growth. Kroger reported first-quarter identical sales growth of 3.2%, beating analysts' average expectation of 2.4%, according to estimates compiled by LSEG. The grocer's shares were down marginally in premarket trading. They have risen about 7% so far this year.
Yahoo
4 hours ago
- Business
- Yahoo
Darden Restaurants operating income slips in fourth quarter despite sales jump
- Darden Restaurants has reported a slide in fourth-quarter operating income and provided a weaker-than-anticipated outlook for its current fiscal year despite a surge in sales. The group, whose portfolio includes popular eatery chains like LongHorn Steakhouse and Chuy's, reported quarterly operating profit of $382.8 million, a slide of 3.2% versus a year earlier. Analysts had anticipated $444.1 million, according to Bloomberg consensus estimates. But sales during the period jumped by 11% to $3.27 billion, compared with estimates of $3.26 billion, bolstered in part by stronger-than-anticipated performance at Olive Garden and LongHorn. Darden (NYSE:DRI) also noted a boost from the acquisition of 103 Chuy's restaurants and 25 net new locations. "Our strategy remains the right one for the company, and we will continue to execute it to drive growth and long-term shareholder value," said CEO Rick Cardenas in a statement. For its 2026 fiscal year, Darden said it projects total sales growth of 7-8% and diluted net earnings per share from continuing operations of $10.50 to $10.70. Analysts had anticipated per-share income of $10.75. Mirroring peers like Domino's Pizza (NYSE:DPZ) and McDonald's (NYSE:MCD), Darden has recently been rolling out promotional drives aimed at attracting price-conscious customers wary of spending heavily during a time of broad economic uncertainty. Earlier this year, Cardenas told analysts that he expected consumers to continue to spend as long as incomes rise and outpace inflation. Recent data points have suggested that price pressures in the U.S. have been mostly benign, although economists have flagged that the impact of sweeping U.S. tariffs on inflation may still be coming. CFO Raj Vennam has also said in March that, because Darden sources most of its products domestically, it is more likely to avoid President Donald Trump's punishing import tariffs. The rest of its materials could easily be found in the U.S., he added. Shares in Darden were higher in premarket trade on Friday, erasing some earlier losses. The stock has risen by over 19% so far this year. Related articles Darden Restaurants operating income slips in fourth quarter despite sales jump Accenture shares slide despite raised full-year outlook, third quarter beat Jabil stock rises as Q3 earnings top estimates, guidance raised
