Kroger Stock Dips Over 3% in 2023 After Sales Fall Short of Expectations Amid Careful Consumer Spending
Kroger's fiscal 2023 revenue growth slightly missed forecasts, with cautious consumer spending impacting sales and a conservative outlook for the year ahead.
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Highlights
- Kroger's 2023 sales narrowly missed analyst estimates, with earnings per share surpassing expectations.
- CEO Rodney McMullen noted consumers are closely monitoring their spending due to inflation and economic uncertainty.
- Following the announcement, Kroger shares declined more than 3% during intraday trading on Thursday.
Kroger (KR), the largest U.S. supermarket chain by revenue, saw its shares fall over 3% intraday on Thursday after reporting fiscal 2023 revenue of $45.2 billion, marking a 1.3% increase but slightly below projections. Despite this, earnings per share (EPS) came in at $1.51, exceeding forecasts.
The company attributed profit constraints to heightened promotional activity and increased theft. CEO Rodney McMullen emphasized that inflation and economic uncertainty are causing shoppers to be more vigilant about their expenditures.
For the full year, Kroger maintains its EPS guidance between $4.45 and $4.60, consistent with its March forecast, though the midpoint of $4.52 is below analyst expectations.
CFO Gary Millerchip projected comparable store sales growth of 1% to 2% for 2023, anticipating results at the lower end of that range over the next three quarters. Additionally, he expects EPS for the current quarter to align with the low end of the company’s guidance.
Despite Thursday’s stock dip, Kroger’s shares remain in positive territory year-to-date, reflecting resilience amid challenging market conditions.
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