Kroger’s stock experienced a notable increase of over 1% in premarket trading following the supermarket chain’s recent financial performance, which exceeded expectations and led to an updated profit forecast. The company reported earnings per share (EPS) of $1.04, surpassing Wall Street’s prediction of $1, and showing an increase from last year’s EPS of $0.93.
Despite these positive earnings, revenue held steady year over year at $33.9 billion, slightly below analysts’ expectations of $34.1 billion as per S&P Global Market Intelligence.
In an encouraging move for investors, Kroger adjusted its outlook for 2025, now projecting same-store sales growth in the range of 2.7% to 3.4%. This is an improvement from the prior expectation of 2.25% to 3.25%. Additionally, the company raised the low end of its earnings per share guidance by $0.10, anticipating EPS for the year to fall between $4.70 and $4.80.
The recent performance comes during a period of restructuring for Kroger, under the leadership of interim CEO Ron Sargent, who has initiated several significant changes, including the elimination of approximately 1,000 jobs and the closure of around 60 stores. This restructuring followed the ousting of longtime CEO Rodney McMullen in March, prompted by a probe into his conduct.
In a statement, Sargent emphasized Kroger’s commitment to enhancing organizational efficiency and improving customer experience, noting, “Kroger delivered another quarter of strong results, which demonstrates the clear and measurable progress we’ve made on our priorities — to simplify our organization, to improve the customer experience and to focus on work that creates the most value.”
