Kroger’s $46.12 billion revenue exceeded forecasts, driven by digital growth, though adjusted EPS missed by a penny.
Kroger reported first-quarter revenue of $46.12 billion, surpassing the $45.47 billion estimate, as identical sales rose 1% year-over-year. E-commerce sales jumped 19%, and Kroger Precision Marketing profit climbed over 20%, offsetting cautious consumer spending.
Adjusted earnings per share reached $1.58, a penny below the $1.59 consensus, while net earnings rose to $903 million from $866 million. Gross margin contracted to 22.7% of sales, pressured by fuel revenue mix and higher transportation costs.
Operating profit increased to $1,407 million from $1,322 million, aided by lower depreciation charges. The company maintained its full-year outlook despite margin pressures and rising wage investments.