The Kroger Co (NYSE:KR) has reported first-quarter revenue that was just shy of expectations but earnings that beat consensus, sending its shares lower in pre-market trading.
The Cincinnati-based supermarket chain posted revenue of $45.17 billion, up 1.3% but below the $45.4 billion expected by Wall Street. Excluding fuel sales, it said sales were up 3.5% from the same quarter last year.
Adjusted earnings per share increased to $1.51, beating the $1.43 Street consensus estimate.
"As more customers are feeling the effects of inflation and economic uncertainty, we are growing customer households by providing fresher products at affordable prices with personalized rewards," chairman and CEO Rodney McMullen said in a statement.
Kroger has guided for full-year identical sales excluding fuel to rise by 1% to 2%, while adjusted earnings per share are likely to be in a range of $4.45 to $4.60, including the benefit of a 53rd trading week.
"Kroger's first quarter results demonstrate the durability of our business model in a more challenged operating environment,” chief financial offer Gary Millerchip added.
"The investments we have made over recent years to deliver for our customers and strengthen our value creation flywheel give us the confidence to reaffirm our full-year identical sales without fuel and adjusted net earnings per diluted share guidance.”
Its shares were down 3.4% at $45.58 ahead of the market opening.
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