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- Kroger posted mixed results in the second quarter.
- The company's results exceeded expectations, while sales were insufficient.
- His compositions have improved sequentially but have lagged behind their peers.
Kroger (KR) announced today its results for the second quarter of its 2019 fiscal year. While the retailer's revenue has returned to growth after three quarters of decline, its sales have been lower than the estimates by Wall. Street.
In the second quarter, Kroger's compilations improved sequentially. The company's non-fuel compressors increased 2.2%, within its target of 2.0% to 2.25%. In the first quarter, the composition of Kroger increased by 1.5%.
Rodney McMullen, CEO of Kroger, commented on the results. Competitors in the second quarter (without fuel) were the best since the launch of the company's transformation plan. Although Kroger's stooges improved, they were lagging behind their peers. In the second quarter, Target's offerings (TGT) increased by 3.4%, while Walmart's (WMT) offers in the United States grew by 2.8%. Target and Walmart traffic continued to grow, driven by their digital transformation. The same day delivery of retailers, the expanded offer and the valuation of prices boosted their compositions.
Kroger is expanding its private labels as well as its collection and delivery services. The company launched 203 brands in the second quarter and 219 in the first quarter. It expanded its collection and delivery services to 1,780 and 2,225 sites, respectively, in the second quarter.
Kroger's strategy strengthens its competitors. However, Walmart, Target and Costco continued to defend and increase their market share. Costco's robust compilations have outpaced those of his peers in recent quarters.
The second quarter of Kroger in brief
In the second quarter, Kroger's revenue reached $ 28.2 billion, up 1.1% year-on-year (year-over-year), compared to $ 28.4 billion for analysts. His fuel-free compositions increased by 2.2%. The company's first-in, first-out (FIFO) gross margin ratio decreased by 29 basis points, reflecting continued weakness in its pharmacy business.
Retailer's adjusted EPS increased 7.3% year over year to $ 0.44, exceeding analysts' estimate of $ 0.41. Walmart and Target also beat analysts' EPS estimates in the second quarter.
Kroger has reiterated its forecast for the entire year and forecasts a growth of 2.0% to 2.25%. He expects his adjusted EPS to increase from 2% to 7% to $ 2.15 to $ 2.25. The KR action was flat in the trade before marketing today.
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