克罗格第二季度收益报告中的销售额和利润率均高于相同预期

Kroger Co. (NYSE:KR) moved slightly higher in premarket trading on Thursday after releasing its FQ2 earnings report. The grocery store operator said identical-store sales excluding fuel rose 1.2% for the quarter that ended on August 17 to come in slightly ahead of the expectation of analysts for a rise of 1.0%.

Adjusted FIFO operating profit was $984 million, vs. $977 million consensus and $989 million a year ago.

Gross margin was 22.6% of sales during the quarter, vs. 22.0% consensus. The FIFO gross margin rate, excluding fuel, increased 42 basis points compared to the same period last year. The result reflected Kroger's (KR) ability to improve margin, while maintaining competitive pricing and helping customers manage their budgets. The increase in rate was primarily attributable to favorable product mix in the grocery business including Our Brands, lower shrink, and sourcing benefits partially offset by lower pharmacy margins.

The company's LIFO charge for the quarter was $21 million, vs. a LIFO charge of $4 million a year ago.

EPS was reported at $0.93 vs. $0.91 consensus and $0.96 a year ago.

In terms of capital allocation, Kroger (KR) said it expects to continue to generate strong free cash flow and remains committed to investing in the business to drive long-term sustainable net earnings growth, as well as maintaining its current investment grade debt rating. The grocery store giant expects to continue to pay its quarterly dividend and expects the rate to increase over time. Of note, Kroger (KR) has paused its share repurchase program to prioritize de-leveraging following the proposed merger with Albertsons (ACI).

On the balance sheet, Kroger's (KR) net total debt to adjusted EBITDA ratio at the end of the quarter was 1.24 vs. 1.31 a year ago. The company's net total debt to adjusted EBITDA ratio target range is 2.30 to 2.50.

Looking ahead, Kroger (KR) still sees full-year EPS of $4.30 to $4.50 (midpoint $4.40) vs. $4.43 consensus. Kroger (KR) also anticipates capital expenditure spending of $3.6 billion to $3.8 billion.

Shares of Kroger (KR) were up 0.75% in premarket trading. Albertsons (ACI) fell 0.40% and Sprouts Farmers Market (SFM) gained 0.28%.