Kroger Co. (KR – Get Report) shares were climbing in trading Thursday in spite of the fact that the grocer’s profit fell year over year and same-store sales fell short of Wall Street expectations.
Kroger is up 0.6% Thursday.
The company reported third-quarter earnings of $317 million, or 48 cents a share on an adjusted basis, a nickel better than the 43 cents analysts were expecting. Kroger said it expects full-year earnings between $2 and $2.15 per share.
Kroger also reported revenue of $27.67 billion, a 0.3% year-over-year decrease, that was ahead of analysts’ $27.56 billion expectations. The company reported a 60% year-over-year increase in digital sales.
However, the company’s same-store sales only increased 1.6%, short of analysts’ 1.65% expectations.
“Kroger is transforming our business model. We’re moving from a traditional grocer to a growth company with both a strong customer ecosystem that offers anything, anytime, anywhere and asset-light, high-margin alternative partnerships and services. Restock Kroger is the blueprint for this transformation,” CEO Rodney McMullen said.
Kroger Co. shares were trading at $29.25 per share on Thursday afternoon, up $0.61 (+2.13%). Year-to-date, KR has gained 10.28%, versus a 1.08% rise in the benchmark S&P 500 index during the same period.
KR currently has a StockNews.com POWR Rating of B (Buy), and is ranked #5 of 18 stocks in the Grocery/Big Box Retailers category.
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