Kroger demonstrated resilience with strong digital and alternative profit growth, maintaining household engagement and achieving earnings growth despite some challenges such as organized retail crime and economic pressures on consumers. The company made strategic investments in pricing and promotions to support consumer spending. However, flat identical sales and the impact of Express Scripts remain concerns.

Company Guidance

During the Kroger Co. Third Quarter 2023 Earnings Call, the company provided guidance on several key metrics. Kroger achieved an adjusted earnings per share growth of 8% for the quarter and expects full-year identical sales without fuel to be in the range of 0.6% to 1%. The adjusted FIFO net operating profit is anticipated to be within $4.9 billion to $5 billion. Digital sales grew by 11%, with significant contributions from both pickup and delivery services. The company's gross margin was reported at 22% of sales, with a FIFO gross margin rate, excluding fuel, increasing by 3 basis points year-over-year. Kroger's OG&A rate rose by 32 basis points, excluding fuel and adjustments, driven by investments in wages and benefits, as well as strategic initiatives. The company also highlighted growth in alternative profit businesses, with Kroger Precision Marketing celebrating its sixth anniversary, and the health and wellness segment exceeding internal expectations. Looking ahead, Kroger expects to exit the fourth quarter with a stronger sales trend and anticipates adjusted EPS to be between $4.50 and $4.60. Additionally, Kroger is on track to close its proposed merger with Albertsons in early 2024, having certified substantial compliance with the FTC's second request.

Strong Digital Performance

Kroger's digital business delivered double-digit growth in both pickup and delivery services, with digital sales growing 11% in the third quarter.

Alternative Profit Growth

Growth in alternative profit businesses remained strong, contributing significantly to Kroger's earnings, with Kroger Precision Marketing continuing to expand.

Fuel Segment Success

The fuel team exceeded expectations with customers saving 14% more in rewards, leading to gallon sales outpacing the industry.

Improved Financial Metrics

Kroger achieved adjusted earnings per share growth of 8% and maintained strong free cash flow, with a net total debt to adjusted EBITDA ratio of 1.4.

Customer Loyalty and Engagement

Kroger achieved its 10th consecutive quarter of total household growth, with increased engagement from budget-conscious households.

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Kroger Company (DE:KOG) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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DE:KOG Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Sep 13, 2018	2018 (Q2)	- / 0.40	0.378	5.13% (+0.02)	―	―
Dec 06, 2018	2018 (Q3)	- / 0.47	0.427	9.09% (+0.04)	―	―
Mar 07, 2019	2018 (Q4)	- / 0.47	0.611	-23.81% (-0.15)	―	―
Jun 20, 2019	2019 (Q1)	- / 0.70	0.708	-1.37% (>-0.01)	―	―
Sep 12, 2019	2019 (Q2)	- / 0.43	0.397	7.32% (+0.03)	―	―
Dec 05, 2019	2019 (Q3)	- / 0.46	0.465	-2.08% (>-0.01)	―	―
Mar 05, 2020	2019 (Q4)	- / 0.55	0.465	18.75% (+0.09)	―	―
Jun 18, 2020	2020 (Q1)	- / 1.18	0.698	69.44% (+0.48)	―	―
Sep 11, 2020	2020 (Q2)	- / 0.71	0.427	65.91% (+0.28)	―	―
Dec 03, 2020	2020 (Q3)	- / 0.69	0.456	51.06% (+0.23)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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DE:KOG Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Dec 05, 2024	€56.83	€56.59	-0.42%
Sep 12, 2024	€46.95	€49.30	+4.99%
Jun 20, 2024	€47.88	€48.31	+0.90%
Mar 07, 2024	€45.31	€49.15	+8.46%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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