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Kroger (NYSE:KR) shares fell 4% in pre-open trading Thursday despite posting better than expected first-quarter results and raising 2022 guidance.
The grocery chain reported Q1 adjusted EPS of $1.45, which beat the consensus of $1.29.
Identical Sales without fuel increased 4.1% in the quarter. Fresh Department identical sales increased 5.2% while Our Brands identical sales increased 6.3%. Total revenue was $44.6 billion in the quarter, versus the consensus of $43.68 billion and $41.3 billion last year. Excluding fuel, sales increased 3.8% compared to the same period last year.
“Kroger achieved strong first-quarter results as we successfully executed on our strategy of Leading with Fresh and Accelerating with Digital,” CEO Rodney McMullen commented.
Looking ahead, Kroger sees FY2022 identical sales without fuel to be in the range of 2.5% to 3.5%, versus its prior guidance of 2.0% to 3.0%. They see FY2022 EPS of $3.85-$3.95, versus the prior guidance of $3.75 to $3.85 and the consensus of $3.84.
“Our relentless focus on executing our strategy and sustained food at home trends led to a strong first quarter,” McMullen added. “The Kroger team is effectively navigating a dynamic retail environment. Our diverse and resilient business model gives us confidence to raise our full-year guidance.”
McMullen said the company remains confident in its ability to deliver sustainable earnings growth and total shareholder returns of 8-11% over time.
