Kroger shares drop after sales as buyers watch spending

Key takeaways

Kroger sales missed estimates and its outlook was at the lower end of expectations.
CEO Rodney McMullen said customers are watching their spending.
Shares of Kroger fell more than 3% during the day on Thursday following the news.

Shares of Kroger (KR) fell more than 3% intraday on Thursday after the largest U.S. supermarket chain by revenue missed sales estimates and gave a muted outlook.

Kroger announced that revenues in fiscal 2023 rose 1.3% to $45.2 billion, slightly below estimates. Earnings per share (EPS) of $1.51 beat expectations. The company said increased promotions and theft were limiting profits.

CEO Rodney McMullen explained that buyers are watching increasing their spending due to inflation and economic uncertainty.

For the year , Kroger expects EPS to be $4.45 to $4.60, the same forecast it gave in March. The midpoint of $4.52 per share was below analysts' expectations.

Chief Financial Officer Gary Millerchip said that 2023 the Same-store sales will still be up 1% to 2% as expected, although at the lower end of that over the next three quarters. He added that current quarter EPS would also be at the low end of the company's forecast range.

Despite Kroger's drop&# Thursday's stock price was still in positive territory for the year.