Kroger Co (NYSE:KR) slashed its full-year profit forecast on Friday as the supermarket chain struggles with an intensifying price war with rival US grocers and low prices for staple goods.
Kroger slashed its full-year profit forecast to $2.03-$2.13 per share from $2.19-$2.28. Excluding a charge, the company expects to earn $2.10-$2.20 per share.
The company also cut its outlook for full-year comparable sales growth, excluding fuel, to 1.4%-1.8% from 2.5%-3.5%.
Kroger also cut its full-year estimate for capital investments, excluding some items, by about $500mln to $3.6bn-$3.9bn.
Rival grocers such as Sprouts Farmers Market Inc (NASDAQ:SFM), Supervalu Inc (NYSE:SVU) and Whole Foods Market Inc (NASDAQ:WFM) also blamed the prolonged food deflation and warned of weaker sales.
After initial falls, Kroger shares were up 0.8% to $31.57 on Friday. But Supervalu shares were anything but, as the share price tumbled by 4.6% to $4.72. Whole Foods shares were down 2.1% at $28.66.