The grocery chain reported a Q1 adjusted EPS of $1.45, which beat the consensus of $1.29. Identical Sales without fuel increased 4.1% in the quarter. Moreover, Fresh Department comparable sales increased 5.2%; meanwhile, Our Brands similar sales increased 6.3%. Total revenue was $44.6 billion in the quarter, versus the consensus of $43.68 billion and $41.3 billion last year. Excluding fuel, sales increased 3.8% compared to the previous year’s period.
CEO Rodney McMullen commented that Kroger achieved first-quarter solid results as they successfully executed their strategy of Leading with Fresh and Accelerating with Digital.
Looking ahead, Kroger sees FY2022 comparable sales without fuel in the range of 2.5% to 3.5%, versus its prior guidance of 2.0% to 3.0%. They see FY2022 EPS of $3.85-$3.95 versus the previous guidance of $3.75 to $3.85 and the consensus of $3.84.
McMullen added that their relentless focus on executing our strategy and sustained food-at-home trends led to a solid first quarter. The Kroger team is effectively navigating a dynamic retail environment. Their diverse and resilient business model gives them the confidence to raise full-year guidance.
Furthermore, McMullen added that the company remains confident in delivering sustainable earnings growth and total shareholder returns of 8-11% over time.