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Kroger (NYSE:KR) shares dropped more than 3% intra-day today despite the grocery chain reporting Q1 earnings and revenue that surpassed analyst expectations. Th

Kroger Shares Drop 3% Despite Better Than Expected Q1 Results

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Kroger (NYSE:KR) shares dropped more than 3% intra-day today despite the grocery chain reporting Q1 earnings and revenue that surpassed analyst expectations.

The company posted EPS of $1.43, beating the Street estimate of $1.34. Revenue for the quarter also exceeded forecasts, coming in at $45.27 billion compared to the anticipated $44.93 billion.

Kroger's first-quarter performance was characterized by a modest 0.5% increase in identical sales, excluding fuel, and a total sales increase of 0.6% compared to the same period last year, also excluding fuel.

The company saw more than 8% growth in digital sales, with delivery and pickup services experiencing double-digit growth, demonstrating the success of its market strategy.

Despite a challenging economic environment, Kroger's focus on providing value and personalized promotions resonated with customers. This approach resulted in an increase in total households, loyal households, and customer visits.

The company's CEO attributed the strong results to long-term investments in diversifying Kroger's business model, which have enabled effective management of economic cycles.

Looking forward, Kroger reaffirmed its full-year 2024 guidance. The company projects identical sales, excluding fuel, to grow between 0.25% and 1.75%. Additionally, it expects an adjusted EPS between $4.30 and $4.50, compared to the Street estimate of $4.43.

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