News: stock, crypto, macro, education

Kroger Reports Mixed Q2 2024 Earnings: Beats Estimates but Faces Flat Sales

Kroger Reports Mixed Q2 2024 Earnings: Beats Estimates but Faces Flat Sales

Kroger, one of the largest grocery retailers in the U.S., released its Q2 2024 earnings report on September 12, 2024. While the company managed to surpass Wall Street expectations for earnings per share (EPS), sales growth remained stagnant compared to last year. Here's a detailed breakdown of Kroger's Q2 2024 performance.

Kroger Beats EPS Expectations

In the second quarter of 2024, Kroger reported adjusted earnings per share (EPS) of $0.93, beating analysts' estimates of $0.91. However, this figure was down slightly from the $0.96 EPS recorded in the same period last year. Despite this, Kroger's ability to outperform expectations has been attributed to strong customer engagement and digital sales growth​.

On an unadjusted basis, Kroger posted a net income of $466 million, or $0.64 per share, a significant improvement from a loss of $180 million, or $0.25 per share, in the prior-year quarter​.

Stagnant Sales and Same-Store Growth

Kroger's total sales for Q2 2024 were $33.9 billion, essentially flat year-over-year and just shy of the forecasted $34.09 billion. The company’s identical sales (excluding fuel) saw a modest increase of 1.2%, reflecting cautious consumer spending in a competitive market​.

Despite the sluggish overall sales, digital sales were a bright spot, growing by 11%. This growth underscores Kroger's successful efforts to expand its e-commerce and digital platforms, a critical area for long-term competitiveness​.

Kroger's Full-Year Outlook

Looking ahead, Kroger reaffirmed its full-year adjusted EPS outlook, maintaining a projection between $4.30 and $4.50. Additionally, the company adjusted its identical sales forecast for the year, now expecting growth between 0.75% and 1.75%​. Kroger emphasized its focus on offering personalized promotions, competitive pricing, and improving its seamless shopping experience to attract more customers​.

More articles