Kroger (NYSE: KR ) shares are down more than 1.43% in early Friday trading after the company reported second quarter earnings, missing revenue expectations.
The retailer posted earnings of $0.96 per share, $0.05 better than the analyst estimate of $0.91. However, revenue for the quarter came in at $33.9 billion, below the consensus estimate of $34.12B and below the $34.6B reported during the same period last year.
Identical sales without fuel increased by 1%, while gross margin was 21.8% of sales for the second quarter.
"The strength and diversity of Kroger's business model is delivering consistent results in what remains a challenged environment," commented KR CEO Rodney McMullen. "By investing in price and providing more personalized offers, we are helping customers stretch their budgets and manage the ongoing effects of reduced government benefits, inflation and higher interest rates."
The Kroger CEO also noted that they expect the environment to remain challenging going forward.
Looking ahead, Kroger reaffirmed its FY2024 EPS of between $4.45 and $4.60 versus the consensus of $4.51. In addition, it sees identical sales without fuel of 1% to 2%, with underlying growth of 2.5% to 3.5% after adjusting for the effect of Express Scripts.
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