Kroger Co (NYSE:KR, XETRA:KOG) swung to a quarterly loss in the third quarter as rising expenses weighed on results, despite modest growth in core sales.
The US grocery giant reported earnings per share of $1.05, slightly above analysts’ expectations of $1.04, while revenue fell short at $33.9 billion, below the $34.2 billion estimate.
Identical-store sales excluding fuel rose 2.6%, missing the projected 2.93%.
For the full year, Kroger now expects EPS in a range of $4.75 to $4.80, compared with prior guidance of $4.70 to $4.80. Full-year identical-store sales excluding fuel are projected to grow between 2.8% and 3%, while capital expenditures are forecast at $3.6 billion to $3.8 billion, roughly in line with estimates of $3.77 billion.
Shares dropped 7.8% in early trading following the results.
Analysts at Jefferies said the results showed “strong cost discipline” despite lighter-than-expected identical-store sales, highlighting effective operational execution. Kroger’s management also expects its e-commerce segment to reach profitability in 2026 following recent strategic changes, a positive sign given the double-digit growth in online sales.
Jefferies noted that Kroger narrowed its full-year identical-store sales guidance toward the lower end, factoring in a 30 to 40 basis point headwind in Q4 from the Inflation Reduction Act, with no anticipated impact on profit.