Kroger dazzles on the margin line despite headwinds; grocery peers on watch
Dec. 02, 2021 8:41 AM ETThe Kroger Co. (KR)TGT, SFM, ACI, GOBy: Clark Schultz, SA News Editor12 Comments
- Kroger (NYSE:KR) trades higher after sliding past consensus marks with its Q3 earnings report as the grocery operator navigated around tough labor and supply chain conditions more smoothly than some anticipated. Kroger's (KR) guidance also beat the consensus marks.
- The highlight of the Q3 report may have been the 103% jump in digital sales compared to 2019. Meanwhile, gross margin was 21.66% of sales for the quarter and the FIFO gross margin rate only decreased 41 basis points despite higher supply chain costs and continued price investments.
- Target (NYSE:TGT) and Albertsons (NYSE:ACI) are both slightly higher in premarket action, while Sprouts Farmers Market (NASDAQ:SFM) and Grocery Outlet Holding (NASDAQ:GO) are slightly lower.
- Meanwhile, shares of Kroger are up 6.67% in premarket rally in something of a relief rally after peeling off almost the exact same amount in the week ahead of the report.
- Kroger (KR) has now recorded eight straight EPS beats.