Kroger Slashes Annual Sales Forecast as Q2 Identical Sales Miss
KR is trading near its 52-week low of $54.15 (2.2% above the low).
Summary
Kroger cut its full-year identical sales (ex-fuel) guidance to 0.2%-0.8% growth, down from a prior 1%-2% range, citing cautious consumer spending and a ~140 bps headwind from the Inflation Reduction Act's impact on pharmacy revenue. Q2 identical sales rose just 0.2%, sharply below the 0.9% consensus and last year's 3.4% growth. Shares fell about 3% premarket, adding to pressure near the 52-week low. This follows the company's Q1 report in June, which showed only 1.0% identical sales growth and an EPS miss, and comes amid the pending $1.65B Giant Eagle acquisition. The guidance cut signals management expects the sales slowdown to persist through the year, a material negative for a stock already trading near its 52-week low.
At the time of this announcement, KR was trading at $55.34 on NYSE in the Trade & Services sector, with a market capitalization of approximately $34.9B. The 52-week trading range was $54.15 to $76.58. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.