Kroger reported earnings on December 4th with total sales of $33.9B increasing 1% vs. last year, but coming in below investor expectations, resulting in the stock trading down ~5%.
Despite softer sequential topline performance, ID sales accelerated on a two-year stacked basis, with multiple tailwinds including strong resilient core food performance, Pharmacy growth, double-digit eCommerce momentum, and improved market share trends. Leadership also acknowledged a mix of headwinds this quarter, including cautious consumer behavior, the pause in SNAP benefits due to the government shutdown, reduced discretionary spending, and middle-income shoppers beginning to moderate trips.
Download Harvest Group’s full earnings recap with unique takeaways for suppliers here: