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Investing.com -- Kroger reported first-quarter earnings that exceeded analyst expectations, while revenue fell slightly short of estimates. The grocery retailer also raised its full-year sales guidance but maintained its earnings outlook.
Kroger (NYSE:KR)’s share price is flat in premarket trading.
Kroger posted adjusted earnings per share of $1.49 for the first quarter, surpassing the analyst consensus of $1.45. Revenue came in at $45.12 billion, just below the $45.28 billion analysts had projected. Compared to the same quarter last year, revenue decreased slightly from $45.3 billion, primarily due to the sale of Kroger Specialty Pharmacy.
The company reported identical sales growth without fuel of 3.2% YoY, driven by strong performance in pharmacy, eCommerce, and fresh categories. eCommerce sales jumped 15% compared to the previous year.
"Kroger delivered solid first quarter results, with strong sales led by pharmacy, e-commerce and fresh," said CEO Ron Sargent. "We made good progress in streamlining our priorities, enhancing customer focus, and running great stores to improve the shopping experience."
For the full fiscal year 2025, Kroger raised its identical sales without fuel guidance to a range of 2.25% to 3.25%, up from its previous forecast. However, the company maintained its adjusted earnings per share outlook of $4.60 to $4.80, in line with analyst expectations of $4.76.
CFO David Kennerley commented, "Our strong sales results and positive momentum give us confidence to raise our identical sales without fuel guidance. While first quarter sales and profitability exceeded our expectations, the macroeconomic environment remains uncertain."