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Shares of Kroger jumped 2% on Thursday even as the grocery chain reported mixed fourth-quarter earnings, lifting retail sentiment.
Kroger's earnings per share came in at $1.14, better than the analyst estimate of $1.11. Revenue stood at $34.3 billion, missing the consensus estimate of $34.67 billion.
Identical sales without fuel increased 2.4%, the company said.
"Kroger is operating from a position of strength, delivering fourth quarter results that came in ahead of expectations due to the strength of our model and the disciplined execution of our teams," said Kroger chairman and CEO Ron Sargent. "We enter 2025 with positive momentum, focused on delivering an incredible customer experience through great quality at low prices.”
For fiscal 2025, the grocery chain projected identical sales without fuel at 2.0% – 3.0%. Adjusted net earnings per diluted share at $4.60-$4.80, below consensus estimate of $4.81.
Interim CFO Todd Foley said Investments made to diversify our business have added more ways for Kroger to drive sustainable future growth.
“With our strengthened balance sheet, we plan to continue to invest in our business through new store growth, grow our dividend subject to board approval, and return excess cash to our shareholders through share repurchases to drive shareholder returns in 2025, consistent with our long-term growth expectations,” he said.
Sentiment on Stocktwits turned ‘neutral’ from ‘extremely bearish’ a day ago. Message volume climbed further in the ‘extremely high’ zone.
Kroger was subject to a lawsuit by fellow grocery chain Albertsons late last year after its $25 billion merger collapsed due to regulatory hurdles.
Earlier this week, former chairman and CEO Rodney McMullen was ousted following a board investigation connected to his personal conduct and unrelated to the business, the company said.
Kroger stock is up 4.3% year-to-date.
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