Kroger (KR.US) Q3 Sales Miss Expectations Raises Full-Year Same-Store Sales Guidance

US retailer Kroger (KR.US) reported its third-quarter 2024 financial results. The company's Q3 sales were US$33.634 billion, down 1.0% YoY, missing market expectations of US$34.2 billion; same-store sales (excluding fuel) rose 2.3%, better than market expectations of 1.8%, down 0.6% YoY.

The decline in Q3 sales was due to the sale of Kroger's professional pharmacy business and a decrease in fuel sales (average price per gallon was lower YoY).

Net profit attributable to the Company was US$618 million, down 4.3% YoY from US$646 million. Adjusted EPS was US$0.98, slightly higher than market expectations of US$0.97.

Looking ahead, Kroger expects full-year 2024 same-store sales (excluding fuel) to grow 1.20%-1.50%, down from previous expectations of 0.75%-1.75%; adjusted EPS is expected to be US$4.35-4.45, down from previous expectations of US$4.30-4.50.