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CINCINNATI — Kroger Co. posted first-quarter earnings that topped expectations. The retailer reported its first quarter 2024 results, reaffirmed its guidance for the rest of the fiscal year and told investors that its “Leading with Fresh and Accelerating with Digital” strategy continues to position Kroger for long-term sustainable growth.
“Kroger is off to a solid start in 2024 led by better-than-expected performance of our grocery business,” chief executive officer Rodney McMullen said. “Kroger is delivering exceptional value at a time when many customers need it more than ever, by providing affordable prices with personalized promotions. We appreciate our associates who are elevating the customer experience and improving store execution. Together, this is growing households and increasing customer visits. The long-term investments we have made to strengthen and diversify our model enables us to manage economic cycles and gives us the confidence to deliver on our full year outlook. By delivering value for customers and investing in our associates, Kroger remains well-positioned to generate attractive and sustainable returns for our shareholders.”
Kroger reported total sales of $45.3 billion in the first quarter, up from $45.2 billion for the same period last year. Excluding fuel, sales increased 0.6% compared to the same period last year. Identical sales, excluding fuel, rose 0.5% at the supermarket chain in the first quarter, beating analysts’ average projection of a 0.13% gain. The company also reported that it grew digital sales more than 8%, with delivery and pickup combining for double-digit growth. Kroger said it also increased total households, loyal households and customer visits.
The company reported an operating profit of $1.29 billion for the first quarter, and earnings per share of $1.29.
For the full year, Kroger reaffirmed its guidance that calls for:
- Identical Sales without fuel of 0.25% – 1.75%
- Adjusted FIFO Operating Profit of $4.6 – $4.8 billion
- Adjusted net earnings per diluted share of $4.30 – $4.50
- Adjusted Free Cash Flow of $2.5 – $2.7 billion**
- Capital expenditures of $3.4 – $3.6 billion
