Despite tighter consumer spending, Kroger stated that the flexibility of its business model helped the company navigate the third quarter when it topped a Wall Street estimate on earnings and revenue.
An analyst consensus estimate published by Yahoo Finance anticipated adjusted diluted earnings per share of 91 cents and revenues of $33.88 billion.
Identical store sales without the effect of fuel price fluctuations slipped 0.6% in the quarter year over year. The company asserted that idents without fuel would have grown 1% in the period if not for the reduction in pharmacy sales from the termination of Kroger’s agreement with Express Scripts effective December 31, 2022.
Sales were $33.96 billion versus $34.2 billion in the year-previous quarter. Operating profit was $912 million versus $841 million in the year-before period, Kroger noted, while adjusted operating profit was $1.02 billion versus $1.09 billion.
In announcing the financial results, company chairman and CEO Rodney McMullen said, “Kroger’s third-quarter results highlight the strength and diversity of our business model in a challenged operating environment, as strong fuel performance and growth in our alternative profit businesses supported continued adjusted net earnings per diluted share growth. As consumer spending tightens, we are focused on providing customers with exceptional value. By maintaining our long-term commitment to lower prices, personalized promotions and rewards, we are growing households and increasing loyalty, positioning Kroger for sustainable future growth. We appreciate our associates and continue to invest in wages, benefits and training, which is resulting in continued improvements in our customer experience.”
