Kroger Co. (NYSE: KR) on early Thursday reported revenues and earnings that topped what Wall Street originally called for. However, same-store sales just missed estimates, while Kroger stock fell modestly.
Kroger posted fiscal third-quarter earnings of USD 317 Million. The supermarket chain topped Wall Street’s expectations recording earnings per share of 48 cents on revenue of USD 27.56 Billion. Analysts estimated earnings per share to fall 2% to 43 cents and expected revenue of 0.7% or USD 27.557 Billion. Kroger same-store sales excluding fuel rose to 1.6%, falling just short of the 1.7% estimate. The Cincinnati-based Company’s stock fell 1.8% to 28.13 in the morning trade on Thursday.
Kroger maintains there predictions for full-year earnings per share to be in the range of $2 to $2.15. They also expect same-store sales results to be similar to there first-half results.
Kroger is moving into digital ordering with hopes of drawing more money by selling data on customer trends to others. In October Kroger and Walgreens partnered up to test a grocery pickup program, further cementing their digital journey. The program allows customers to order Kroger groceries online and get them at Walgreen stores.
“We are strengthening the Kroger ecosystem by reducing costs and investing the savings in our associates, technology, and price to grow units, traffic, and share,” said Chairman and CEO of Kroger, Rodney McMullen. “Leveraging our store, logistics and data assets, in turn, creates incremental new profit streams, which then further redefines the customer experience. In this way, our new growth model will be a virtuous cycle.”