- Kroger Co (NYSE:KR) reported third-quarter FY22 sales growth of 7.2% year-on-year to $34.19 billion, beating the consensus of $33.95 billion.
- Identical Sales without fuel increased by 6.9%.
- Adjusted EPS of $0.88 beat the analyst consensus of $0.82.
- Gross margin was 21.4%, and the FIFO gross margin rate, excluding fuel, decreased by 5 basis points Y/Y.
- Operating, general and administrative expenses rose 8% Y/Y to $5.6 billion.
- Operating margin was 2.5%, and operating income for the quarter fell 3.1% to $841 million.
- Kroger held $916 million in cash and equivalents as of November 5, 2022. Net cash provided by operating activities year-to-date totaled $3.3 billion.
- Inventories as of November 5, 2022, increased 15.2% to $8.7 billion.
- The company had a net total debt of $12.5 billion as of November 5, 2022.
- The company plans to continue paying its quarterly dividend and expects this to increase over time. Kroger has already paused its share repurchase program to prioritize de-leveraging following the proposed merger with Albertsons Companies, Inc. (NYSE:ACI).
- Outlook: Kroger raised the FY22 adjusted EPS outlook to $4.05 – $4.15 (prior outlook $3.95 – $4.05) versus the consensus of $4.08.
- It expects FY22 Identical sales without fuel to be 5.1% – 5.3% (prior view 4.0% – 4.5%).
- Price Action: KR shares are trading higher by 2.64% at $50.49 on the last check Thursday.
- Photo Via Company
Bitcoin Falls But Remains Above This Key Level; Compound, Sui Among Top Losers
Bitcoin (CRYPTO: BTC) traded lower, but the cryptocurrency prices remained above the key $29,000 level on Thursday.
Ethereum (CRYPTO: ETH) also moved lower, trading below the key $1,900 mark this morning.
