Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Kroger lifts annual forecasts as online grocery investments click

Stock MarketsJun 17, 2021 12:33PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: The Kroger supermarket chain's headquarters is shown in Cincinnati, Ohio, U.S., June 28, 2018. REUTERS/Lisa Baertlein/File Photo

By Praveen Paramasivam

(Reuters) -Kroger Co raised its forecast for annual profit on Thursday, betting that its quick pickup and delivery services will encourage Americans to order groceries online even as they dine out again.

The company's focus on private labels, use of robots to more quickly stock and dispatch goods through a partnership with Ocado (LON:OCDO) and tie-ups with third parties for deliveries are expected to help Kroger (NYSE:KR) sustain a rapid online sales growth seen since 2019.

First-quarter digital sales jumped 16% at Kroger, even as Inc (NASDAQ:AMZN) and big-box rivals Walmart (NYSE:WMT) Inc and Target Corp (NYSE:TGT) doubled down on grocery.

"The customers continue to like to shop online ... When they shop (online and in stores), our retention rate is incredibly high," Chief Executive Officer William McMullen said on a post-earnings call.

Kroger forecast 2021 adjusted profit per share between $2.95 and $3.10, compared with its prior range of $2.75 to $2.95. It expects 2021 adjusted same-store sales to fall up to 4%, while it had earlier projected a decline of up to 5%.

"We do not believe most investors expected a print this strong, nor a guidance raise this substantial," J.P. Morgan analyst Ken Goldman said.

Shares of Kroger, which unveiled a $1 billion buyback program, jumped 3%. They have gained about 23% this year, compared to a 12% gain for the broader S&P 500 index

The company expects at-home food consumption to soften as reopenings gather pace, even as customers shop more frequently after a year of consolidated trips.

First-quarter revenue came in above pre-pandemic levels at $41.3 billion, above Refinitiv IBES estimates of $39.78 billion.

Strong performance in its alternative profit business, which includes media and personal finance divisions, helped Kroger earn $1.19 per share, above estimates of $1.01.

Kroger lifts annual forecasts as online grocery investments click

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email