Kroger Co (NYSE:KR, ETR:KOG) shares jumped 7% at market open Friday after the company raised its full-year same-store sales forecast and posted mixed first-quarter results.
The grocery giant faces growing competition from Walmart and Costco, but showed resilience with adjusted earnings per share of $1.49, beating Wall Street expectations of $1.45. Same-store sales climbed 3.2%, above the 2.3% forecast, while revenue narrowly missed estimates at $45.12 billion.
CFO David Kennerley said strong sales and positive momentum allowed Kroger to raise its full-year same-store sales guidance, excluding fuel, to 2.25%-3.25%, up from 2%-3%. However, the company maintained its profit outlook, expecting adjusted earnings per share between $4.60 and $4.80.
The quarter ended amid cautious consumer spending amid tariff concerns and higher costs. Kroger is navigating leadership changes with interim CEO Ron Sargent and new CFO Kennerley stepping in after recent departures.
Analysts acknowledge the challenges Kroger faces, including a failed $24.6 billion merger with Albertsons, but see the company as operating from a position of strength in a stable, defensive grocery sector amid uncertain consumer spending.
The stock rose $4.60 to $70.10.