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Grocery company Kroger reported better than expected earnings Thursday, initially prompting its stock to rise 2.5%.
Kroger’s first-quarter net income was $947 million, down from $962 million year-over-year, with adjusted earnings per share of $1.43, beating the $1.35 FactSet consensus, according to Marketwatch.
Sales increased to $45.269 billion compared to $45.165 billion last year, ahead of the FactSet projection of $44.867 billion, with retail sales excluding gas up 0.5%, ahead of FactSet’s 0.1% percent estimate, per Marketwatch.
In a release, Kroger said it grew digital sales 8%, with double-digit growth in delivery and pick-up. In its investor presentation, Kroger said it grew digitally engaged households by 9%, and saw an 18% increase in digital coupon downloads as well as a 17% increase in delivery sales, noting that it has access to first-party data on 62 million households.
In a prepared statement, CEO Rodney McMullen also attributed the positive results to the company’s “affordable prices” and “personalized promotions.”
In March, the FTC, joined by several states, sued to block a proposed merger of Kroger with Albertsons, claiming that it would reduce competition, increase prices and hurt workers, Marketwatch reported, but Kroger remains committed to the proposal.
After its initial pop, Kroger’s stock price slipped more than 3% during morning trading.