Kroger Beats Q1, CEO Departs, Shares Steady

Kroger reported first-quarter adjusted earnings per share of $1.49, exceeding analyst expectations, while revenue of $45.12 billion slightly missed forecasts due to the sale of its specialty pharmacy division. Comparable sales excluding fuel rose 3.2%, reflecting strong grocery demand despite inflation and cautious consumer spending. The company raised its full-year identical sales growth guidance to 2.25%-3.25%, maintaining its annual earnings outlook at $4.60-$4.80 per share amid ongoing economic uncertainty. Kroger continues to face heightened competition from Walmart and Costco and has invested in private label brands and curbside pickup to strengthen its market position. Leadership remains in transition following the recent CEO resignation and internal investigation, with the search for a permanent successor ongoing. Kroger shares were little changed on the earnings news and have increased about 7% year-to-date.