Kroger (KR) Q1 Earnings Report in Focus

Kroger Co. (NYSE:KR) traces its roots back to 1883 when Barney Kroger opened a grocery store in Cincinnati, Ohio. The company worked hard over the years and offered quality goods to customers. The consistency in quality and services offered by Kroger helped it to become a leading grocery retailer in the U.S. It currently operates thousands of grocery retail stores, pharmacies, jewelry stores, as well as several food production facilities.

The Ohio-based retailer recently announced better-than-expected financial results for the first quarter. Kroger reported earnings of 18 cents per share, well below $1.52 per share in the comparable period of 2020. On an adjusted basis, the company earned $1.19 per share, ahead of the consensus forecast of $1.01 per share.

Revenue came in at $41.3 billion, nearly unchanged from $41.55 billion in the year-ago quarter. Analysts, on average, were expecting Kroger to post revenue of $39.67 billion. Digital revenue in the quarter jumped 16 percent on a year-over-year basis.

Commenting on the quarter, CEO Rodney McMullen said in a statement, “Kroger’s strong execution delivered identical sales results in the first quarter that exceeded our original expectations. Customers are responding to the investments we have made in digital, as evidenced by our triple-digit growth in digital sales since the beginning of 2019. We were disciplined in driving costs out of the business and we achieved record growth in Kroger’s alternative profit business, demonstrating the power and attractiveness of our long-term model.”

Kroger also updated its financial outlook for the full year. It is now anticipating adjusted earnings in the range of $2.95 per share to $3.10 per share, up from its previous outlook between $2.75 per share to $2.95 per share.

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