Investing.com -- Kroger (NYSE:KR) has posted better than anticipated fourth-quarter income, sending shares in the supermarket chain higher in early U.S. trading on Thursday.
Ohio-based Kroger has been hit by a waning uptick in food prices that had recently underpinned recent returns but dented customer demand. In November, the company said it had launched more promotions to offset this trend, although it warned that unit volume growth rates have not "improved at the pace we would have expected."
Identical sales excluding fuel in the three months to Feb. 3 decreased by 0.8%, but that was still better than Wall Street estimates for a decline of 1.5%. Total sales grew by 6.4% to $37.1 billion, in line with forecasts.
Adjusted earnings per share rose to $1.34, up from $0.99 in the year-ago period and topping consensus projections of $1.13, thanks in part to lower supply chain costs and strength in Kroger's private label brand.
"As customers manage macroeconomic pressures, we are lowering prices and offering even more ways to save with personalized promotions and rewards," said Chief Executive Officer Rodney McMullen in a statement.
For its 2024 fiscal year, the company guided for identical sales without fuel growth of 0.25% to 1.75% and adjusted net earnings per diluted share of $4.30 to $4.50. Both outlooks were ahead of expectations at the midpoint.