Latest news with #DavidKennerley
Yahoo
3 hours ago
- Business
- Yahoo
Major Supermarket Chain Confirms 60 Stores Will Close–Here's When
Major Supermarket Chain Confirms 60 Stores Will Close–Here's When originally appeared on Parade. A major supermarket chain is joining the unfortunate, ever-growing list of retailers closing stores. On Friday, while delivering its first quarter results, Kroger said it will close dozens of stores in the near future, according to a June 20 announcement, which explained the "approximately 60 stores" closing were doing so under "planned" circumstances and not like some other retailers that surprised fans when they suddenly shut down. The super grocer said it does not foresee the closures impacting shoppers all too much (other than maybe where they shop) and it is "committed to reinvesting" any financial benefits related to shutting down the locations "back into the customer experience." Related: Kroger also confirmed it will offer roles to all associates currently employed at stores it plans to close, so long as they can make the new commute work. Chairman and CEO Ron Sargent is hopeful that the company's decision and its "commitment to driving growth in our core business" will position Kroger well for the future, sharing in a statement, "We are confident in our ability to build on our momentum, deliver value for customers, invest in associates and generate attractive returns for shareholders." Kroger CFO David Kennerley also said the company's decision to focus on its own brands and its online presence positions it "well to navigate the current environment." The nationwide grocer is one of the largest supermarket chains in the U.S. and currently operates over 2,700 stores nationwide. Which stores it plans on closing and why remains unclear. What we do know is that, according to the official announcement, Kroger will phase out the stores "over the next 18 months," meaning the affected stores will open their doors one last time by the end of December 2026. Next: Major Supermarket Chain Confirms 60 Stores Will Close–Here's When first appeared on Parade on Jun 20, 2025 This story was originally reported by Parade on Jun 20, 2025, where it first appeared.
Yahoo
4 hours ago
- Business
- Yahoo
Why Shares of Kroger Are Surging Today
Kroger reported its first-quarter earnings. Results were mixed, but forward guidance impressed. 10 stocks we like better than Kroger › Shares of the large grocer and retail department chain Kroger (NYSE: KR) had surged by roughly 10%, as of 12:38 p.m. ET today, after the company reported earnings for the first quarter of 2025. Kroger reported adjusted earnings per share of $1.49 for the three months ending May 24 on total revenue of $45.1 billion. Adjusted EPS beat Wall Street estimates, while revenue came in just shy of them. Perhaps more importantly, management maintained its full-year earnings outlook and raised its full-year revenue outlook. Kroger's CFO David Kennerley said in an earnings statement: Our strong sales results and positive momentum give us confidence to raise our identical sales without fuel guidance, to a new range of 2.25% to 3.25%. While first-quarter sales and profitability exceeded our expectations, the macroeconomic environment remains uncertain, and as a result, other elements of our guidance remain unchanged. Kroger certainly surprised investors and is being rewarded right now. The positive news also comes as the company is continuing its search for a new CEO after former CEO Rodney McMullen resigned from his post in March. The company's board of directors earlier this year conducted an investigation into McMullen that concluded "his personal conduct that, while unrelated to the business, was inconsistent with Kroger's Policy on Business Ethics." Kroger's forward price-to-earnings multiple of 15 is toward the bottom of its peer group, and it is a consumer staples stock, making it a good defensive pick for any kind of looming recession. Therefore, I think investors can definitely allocate at least some capital to the name. Before you buy stock in Kroger, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Kroger wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool recommends Kroger. The Motley Fool has a disclosure policy. Why Shares of Kroger Are Surging Today was originally published by The Motley Fool 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
8 hours ago
- Business
- Yahoo
Kroger: A Solid First Quarter
Kroger reported first-quarter earnings per share that exceeded expectations. However, revenue missed estimates, and the company's guidance was a bit disappointing. The challenging macroeconomic environment has created a lot of uncertainty. 10 stocks we like better than Kroger › Here's our initial take on Kroger's (NYSE: KR) fiscal 2025 first-quarter financial report. Metric Q1 2024 Q1 2025 Change vs. Expectations Revenue $45.27 billion $45.12 billion 0% Missed Earnings per share (adjusted) $1.43 $1.49 4.2% Beat Gross margin 22% 23% 100 bps n/a Debt-to-Adj. EBITDA ratio 1.25 1.69 35% n/a In the first quarter, Kroger reported solid earnings, although revenue fell short of expectations. The grocery giant reported $1.49 in earnings per share, three cents ahead of analysts' consensus, but sales came in just modestly short of estimates (although same-store sales excluding fuel purchases grew by 3.2% year over year). E-commerce sales were a particularly bright spot, up 15% year over year and becoming more of a part of the company's business. It will be very interesting to keep an eye on this metric going forward. Speaking of going forward, Kroger reaffirmed most of its guidance, including its expectation for full-year EPS in the range of $4.60 to $4.80. Analysts expected to see $4.76, so at the midpoint, management's guidance range is a little weak, especially considering that Kroger beat earnings estimates in the first quarter. On the other hand, Kroger raised its same-store sales guidance (which it refers to as "identical sales without fuel"), so it's fair to say that guidance is a mixed bag. Management also provided some key updates on Kroger's capital allocation strategy, specifically saying that it expects to not only maintain, but increase its dividend over time. The company also addressed its $5 billion accelerated share repurchase program, which started in the fourth quarter of last year, stating that it expects it to be complete "no later than" the third quarter. The initial market reaction to Kroger's earnings report was rather neutral. As of 8:15 a.m. EDT, about 15 minutes after the announcement, Kroger stock was up by less than 0.5%. This isn't too surprising, considering the mixed results with revenue, earnings, and forward-looking guidance. However, it's worth noting that this reaction was before management's quarterly earnings call, which was scheduled for later on the same morning. Depending on the comments made, the stock could definitely react one way or another. In CFO David Kennerley's comments, he specifically called out the uncertain macroeconomic environment as the reason why Kroger didn't raise its guidance for earnings, free cash flow, and other key metrics even though it beat expectations in the first quarter. Tariffs are a key factor to keep an eye on (Kroger sells a lot of products not made here), but it's generally important to realize that there's a lot that is outside of the company's control that can result in better- or worse-than-expected earnings as 2025 goes on. Full earnings report Investor relations page Additional coverage: Where Will Kroger Stock Be in 1 Year? Before you buy stock in Kroger, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Kroger wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Matt Frankel has no position in any of the stocks mentioned. The Motley Fool recommends Kroger. The Motley Fool has a disclosure policy. Kroger: A Solid First Quarter was originally published by The Motley Fool
Economic Times
8 hours ago
- Business
- Economic Times
US stocks open higher with Trump's Middle East decision in focus
U.S. stocks are drifting higher on Friday in their return to trading following the Juneteenth holiday. ADVERTISEMENT The S&P 500 was up 0.4% in early trading and adding to its modest gain for the week. The Dow Jones Industrial Average was up 162 points, or 0.4%, as of 9:35 am. Eastern time, and the Nasdaq composite was 0.6% higher. Treasury yields were also edging higher in the bond market after President Donald Trump said he will decide within two weeks whether the U.S. military will get directly involved in Israel's fighting with Iran. The window offers the possibility of a negotiated settlement over Iran's nuclear program that could avoid increased fighting. The conflict has sent oil prices yo-yoing because of rising and ebbing fears that it could disrupt the global flow of crude. Iran is a major producer of oil and also sits on the narrow Strait of Hormuz, through which much of the world's crude passes. On Wall Street, Kroger jumped 6.8% to help lead the market after the grocer reported a better profit for the latest quarter than Wall Street had forecast. It also raised its forecast for an underlying measure of revenue for the full year. Chief Financial Officer David Kennerley said it's seeing positive momentum, but it's still seeing an uncertain overall economic environment. CarMax rose 4.6% after the auto dealer reported a stronger profit for the latest quarter than analysts expected. The company said it sold nearly 6% more used autos during the quarter than it did a year earlier. ADVERTISEMENT On the losing end of Wall Street was Smith & Wesson Brands, the maker of guns. It tumbled 15.3% after reporting profit and revenue for the latest quarter that fell just shy of analysts' Financial Officer Deana McPherson said 'persistent inflation, high interest rates, and uncertainty caused by tariff concerns' have been hurting sales for firearms, and the company expects demand in its upcoming fiscal year to be similar to this past year's, depending on how inflation and Trump's tariffs play out. ADVERTISEMENT A spate of companies has been adjusting or even withdrawing their financial forecasts for the year because of all the uncertainty that tariffs are creating for their customers and for their suppliers. Everyone is waiting to see how big the tariffs will ultimately not just corporate America. The Federal Reserve has been keeping its main interest rate on hold this year, with its latest such decision coming earlier this week, because it's waiting to see exactly by how much tariffs will grind down on the economy and push up inflation. ADVERTISEMENT In the bond market, Treasury yields edged higher. The yield on the 10-year Treasury rose to 4.41% from 4.38% late Wednesday. The two-year yield, which more closely tracks expectations for what the Fed will do, was holding at 3.94%.In stock markets abroad, indexes rose across much of Europe after finishing mixed in Asia. ADVERTISEMENT Tokyo's Nikkei 225 index edged 0.2% lower after Japan reported that its core inflation rate, excluding volatile food prices, rose to 3.7% in May, adding to challenges for Prime Minister Shigeru Ishiba's government and the central bank. (You can now subscribe to our ETMarkets WhatsApp channel)
CNBC
8 hours ago
- Business
- CNBC
Kroger's shares rise as grocer says shoppers seek lower prices, cook more at home
Shares of Kroger rose about 9% on Friday as the supermarket operator raised its full-year sales outlook and said it's drawing shoppers seeking lower-priced store brands and cheaper alternatives to dining out. The Cincinnati-based grocer said it now expects identical sales, excluding fuel, to increase by 2.25% and 3.25% year over year, higher than its previous expectations for an increase of between 2% and 3%. Identical sales is an industry-specific metric that takes out one-time factors, such as store openings, closures and renovations. Kroger include stores and delivery sales in regions that have been in operation for five full quarters in identical sales. So far this year, shares of Kroger are up nearly 16%, outpacing the approximately 1% gains of the S&P 500 during the same period. Here's how the company did for the fiscal first quarter compared with Wall Street's estimates, according to a survey of analysts by LSEG: In the three-month period that ended May 24, Kroger's net sales were $866 million, or $1.29 per share. Identical sales, excluding fuel, rose 3.2% compared to the year-ago period, with growth coming from pharmacy, e-commerce and fresh groceries. The company's e-commerce sales grew by 15% year over year. Kroger, which owns supermarket banners across the country, has gone through significant changes over the past year. A judge blocked its $25 million acquisition of competitor Albertsons in December. Longtime CEO Rodney McMullen resigned in March after a company investigation into his personal conduct. And the company's legal battle with Albertsons over the demise of the merger deal is ongoing. The company also recently hired a new CFO, David Kennerley, formerly the chief financial officer for PepsiCo Europe, after its former CFO Gary Millerchip left for Costco. On top of company-specific challenges, Kroger faces stiffer competition from Walmart and Costco — particularly as shoppers spend cautiously and watch prices closely because of tariff uncertainty. On an earnings call with analysts on Friday, interim CEO Ron Sargent said Kroger is trying to cater to value-minded shoppers by simplifying its promotions, lowering prices on more than 2,000 products so far this year and emphasizing its private brands that tend to cost less. "Many customers want more value, and as a result, they're buying more promotional products and more of our brand's products," he said. "They're also eating more meals at home." He said the company has seen a jump in shoppers buying larger pack sizes, using coupons more and buying fewer discretionary items such as snacks and adult beverages. Kroger's private labels, which tend to be cheaper than name-brand national brands, have been a growth driver as well. For the seventh consecutive quarter, Sargent said Kroger's own brands grew faster than national brands. Its top two brands were Kroger's more premium-focused brands: Simple Truth, its line of organic items, and Private Selection, which includes gourmet and artisan-inspired items like brioche dinner rolls and lobster mac and cheese. Sargent said Kroger will try to build on that momentum — and health trends it's seeing — by launching 80 new protein products to its Simple Truth line, including protein bars and shakes. As a grocer that sells many food items from the U.S., Sargent said Kroger isn't as impacted by higher tariffs on imports from across the globe as other companies. Yet in places where it does import goods, such as fruit and vegetables or flowers, he said it is "proactively looking for ways to avoid raising prices for our customers, and we consider price changes as a last resort." "Tariffs have not had a material impact on our business so far. And given what we know today, we do not expect them to going forward," he said. Kroger is also taking a hard look at its costs so it can modernize its business and get its e-commerce business closer to profitability, Kennerley said on the earnings call. The e-commerce business, a combination of curbside pickup and deliveries to customers' doors, is not yet profitable. The company said Friday that it will close about 60 stores over the next 18 months, which led to a $100 million impairment charge in the first quarter. Sargent said the company had paused its annual store review during the merger process and not all of its stores are "delivering the sustainable results we need," so now it's catching up with closing unprofitable stores. Still, he said, even as it's shuttering stores, Kroger plans to open new locations in higher-growth parts of the country and will accelerate those openings in 2026. Kroger continues to search for its next CEO. Sargent said the company's board is working with a search firm, but does not yet have an update.
