Particle.news
Download on the App Store
14 ARTICLES
·
5h ago

Kroger Beats Q1 Profit Forecast, Plans to Close 60 Underperforming Stores

Raising its identical sales outlook to 2.25%–3.25% following stronger-than-expected earnings reflects its commitment to invest operational savings in customer experience.

Fruits and vegetables are sold at the Kroger on 11701 S. Sam Houston Pkwy. E., Friday, Oct. 6, 2023 in Houston.
Image
Image
Image

Overview

  • Kroger reported an adjusted EPS of $1.49 in Q1, beating the $1.45 consensus while revenue dipped to $45.12 billion.
  • Identical sales excluding fuel rose 3.2% year-over-year, driven by pharmacy strength, a 15% jump in e-commerce and fresh groceries.
  • The company lifted its full-year same-store sales forecast to a range of 2.25%–3.25% after outpacing early projections.
  • Kroger will shutter about 60 underperforming stores across 16 states over the next 18 months, recording a $100 million impairment charge.
  • Interim CEO Ron Sargent said closure savings will be reinvested in customer experience, affected employees will be offered roles elsewhere and the search for a permanent CEO continues.