Supermarket company Kroger posted adjusted earnings of $1.19 per share for the first quarter, that exceeded the Zacks Consensus Estimate of 99 cents. However, the figure is lower than the year-ago quarter’s $1.22.
Sales fell -0.6% year-over-year to $41,298 million, but surpassed the Zacks Consensus Estimate of $39,222 million. Excluding fuel, sales were -4% lower than the year-ago period.
Kroger’s digital sales rose +16%; without fuel, they fell -4.1%.
Gross margin shrunk -170 basis points to 22.6%. FIFO gross margin, excluding fuel, contracted -65 basis points from the year-ago period.
For 2021, Kroger is expecting adjusted profit per share between $2.95 and $3.10, compared with its prior expectation of $2.75 to $2.95. It projects 2021 adjusted same-store sales to fall up to -4%, vs. prior forecast of up to -5% decline.