Kroger’s Q2 results ‘solid’ overall, says Evercore ISI

Evercore ISI tells investors that Kroger (KR) reported solid results overall, with positive ID sales up 1.2% and growing traffic/households with FIFO gross margin driving a 2c EPS beat despite concerns of a slowing core consumer and rising competitive intensity, the analyst tells investors in a research note. Evercore believes Kroger’s multiple should improve with ID sales trending higher, the share loss gap narrowing, and potential Albertson’s (ACI) merger certainty by year-end.