Kroger’s revenue jumps 8.24% in the fiscal second quarter

Kroger’s revenue jumps 8.24% in the fiscal second quarter
Written by:
Wajeeh Khan
September 11, 2020
  • Kroger’s revenue jumps 8.24% in the fiscal second quarter.
  • The American retail company sees a 65.91% growth in its earnings.
  • Kroger’s digital sales surged 127% on a year over year basis.

The Kroger Co. (NYSE: KR) published its quarterly financial results on Friday that came in stronger than what the analysts had anticipated for the fiscal second quarter. The company attributed its hawkish performance to COVID-19 that fuelled online food sales in recent months. The retailer had also blown past Wall Street estimates in the prior quarter (Q1).

Kroger said that it earned 56.91 pence per share in the second quarter. In terms of revenue, it recorded £23.77 billion on Friday. In comparison, analysts had anticipated the company to report a lower 40.54 pence of earnings per share on £23.16 billion of revenue.

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On a year over year basis, the American retail company saw a 65.91% growth in its earnings in the recent quarter and an 8.24% growth in revenue. Kroger’s health business announced a comprehensive flu shot program earlier this week.

Kroger’s guidance for the full fiscal year

For the full fiscal year, Kroger said that it now expects its adjusted earnings per share to lie in the range of £2.49 to £2.57. On a year over year basis, the Cincinnati-based company forecasts a 13% growth in its comparable sales this year.

CEO Rodney McMullen of Kroger commented on the earnings report on Friday and said:

“We delivered extremely strong results in the second quarter and expect to deliver consistently attractive total shareholders returns. Kroger’s strong digital business is a key contributor to this growth, as the investments made to expand our digital ecosystem are resonating with customers. Our results continue to show that Kroger is a trusted brand and our customers choose to shop with us because they value the product quality and freshness, convenience, and digital offerings that we provide.”

Kroger’s digital sales jumped 127% in the fiscal second quarter

According to Kroger, its digital sales in the fiscal second quarter registered an unprecedented 127% increase versus the comparable quarter of last year. Its same-store sales, consequently, noted a 14.6% annualised growth in Q2.

Kroger jumped less than 1% in premarket trading on Friday. On market open, shares of the company plummeted over 2.5% to £26.56 per share. In comparison, Kroger had started the year at a per-share price of £22.34. Interested in investing in the stocks market online? Here’s a simple guide to get you started.

At the time of writing, Kroger is valued at £20.80 billion and has a price to earnings ratio of 13.06.