On Thursday, Kroger Co. (NYSE: KR) announced its financial results for the first quarter of 2017. Shares of the company dropped nearly 14% before the opening bell.
According to the company, revenue in the first quarter increased 4.9% to $36.3 billion, beating estimates of $35.5 billion. Net income fell sharply from the $696 million the same period last year to $303 million. Adjusted earnings per share fell from $0.72 per share to $0.32 per share. Excluding certain items, earning in the first quarter was $546 million, or $0.58 per share, beating estimates of $0.57 per share.
For the full year 2017, Kroger expected that its GAAP net earnings for 53 weeks to be between $1.74 and $1.79 per diluted share. Adjusted net earnings is expected to be between $2.00 and $2.05 per diluted share. In addition, the company expected that the identical supermarket sales growth, excluding fuel, to be flat to 1% growth for 2017.
“We remain focused on our strategy. This will make a difference for our customers and create value for our shareholders. We are running the business with an eye toward where the customer is going”, Rodney McMullen, the Chairman and CEO of the company, said in the statement on Thursday.
“We are driving our strategy of lowering costs to reinvest in ways that provide the right value to our customers. We're pleased that identical supermarket sales in the last nine weeks of the first quarter were positive, and that has continued in the second quarter to date,” he said.