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KR NYSE· The Kroger Company
Earnings report Q4 2023

Kroger's Revenue Declines Slightly in Latest Quarter

Segments of revenue

Kroger reported total sales of $33.96 billion in the third quarter of 2023, representing a decrease of 0.7% compared to the same period last year. Sales without fuel amounted to $29.85 billion, down 0.5% from the previous year. However, the company's digital sales showed strong growth, with Pickup solutions increasing by 11% and Delivery solutions growing by 20% in the third quarter.

Strengths

Despite the challenging operating environment, Kroger's resilient business model has positioned the company well to navigate economic headwinds. The company remains committed to balancing investments in associates and providing greater value to customers while generating attractive and sustainable returns for shareholders. The growth in digital sales, particularly through Pickup and Delivery solutions, has contributed to the company's overall revenue performance.

Challenges

Kroger faced a slight decline in total sales and sales without fuel in the latest quarter. This decline could be attributed to various factors, including the ongoing economic challenges and potential competition from other grocery retailers. Additionally, the company's net earnings attributable to The Kroger Co. decreased by 20.4% in the first three quarters of 2023 compared to the same period in 2022, primarily due to losses related to opioid settlement charges.

Noteworthy

Kroger's digital sales growth has been a notable highlight, driven by the strength of its Pickup and Delivery solutions. The company's two-hour pickup service, available in over one-third of its stores, and the expansion of its Kroger Delivery network have contributed to the growth in digital sales. Furthermore, Kroger has seen an increase in data analytic services and third-party media revenue, which has positively impacted its overall sales.

Summary

Kroger's revenue in the latest quarter experienced a slight decline, with total sales decreasing by 0.7% and sales without fuel decreasing by 0.5%. However, the company's digital sales, particularly through Pickup and Delivery solutions, showed strong growth. Kroger's resilient business model and focus on providing value to customers and shareholders have positioned the company well to navigate economic challenges. The decline in net earnings attributable to The Kroger Co. in the first three quarters of 2023 compared to the previous year could be attributed to losses related to opioid settlement charges. Overall, Kroger's performance in the latest quarter reflects a mix of challenges and strengths, with digital sales growth being a notable highlight.

Source documents

Form 10-Q  filed on Dec 08, 2023
153 pages scanned

Reference data

Company financials Q4 revenue 37.06B
Analyst estimates Q4 EPS beat by 46.17%
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