Kroger (KR.US) shares are up more than 5% in today's session, as the grocery store operator's gross margin expansion in the second quarter met Wall Street expectations. Interestingly, the higher gross margin was recorded despite extensive sales and promotions for the various grocery products offered in the company's stores.
SECOND QUARTER RESULTS
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app- Adjusted earnings per share $0.93, estimated $0.91
- Sales revenue $33.91 billion, estimated $34.05 billion
- Gross margin 22.6%, estimated 22%
- FIFO gross margin ratio up 42 basis points y/y
- Operating profit $815 million
- Adjusted FIFO operating profit $984 million, estimated $976.8 million
2025 FORECAST
- Adjusted EPS $4.30 to $4.50, estimated $4.43
- Adjusted free cash flow $2.5 billion to $2.7 billion
- Adjusted FIFO operating profit $4.6 billion to $4.8 billion, estimated $4.69 billion
The company's management commented that the planned merger between Kroger and Albertsons will bring significant and tangible benefits to consumers as well as shareholders. The company announced that its ability to generate free cash flow is unwavering despite the mixed macro environment. The company's CEO added that the company will continue to pay quarterly dividends, and the size of the dividend is expected to increase over time.
The company's shares saw their biggest intraday jump in value today since March of this year. Source: xStation
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
