We have been keeping a close eye on Kroger ever since its merger with Albertsons was announced. Most recently, the retailer shared its financial results for the second quarter of 2024, alongside a brief update regarding its merger.
“Kroger achieved solid results in the second quarter demonstrating the strength and resiliency of our model. We are growing households and increasing customer visits by offering a compelling combination of affordable prices and personalized promotions on great quality products, all through a unique seamless experience,” shared Rodney McMullen, Chairman and Chief Executive Officer. “We appreciate our associates for their focus on full, fresh and friendly, which elevates the customer experience. Our long-term model is to consistently invest to lower prices so more customers shop with us, which in turn fuels our alternative profit businesses and drives greater efficiencies. This flywheel enables Kroger to deliver exceptional value for customers and investing in our associates, and by doing so, we are well-positioned to generate attractive and sustainable returns for shareholders.”
Here is a quick breakdown of the highlights:
Pending the merger with Albertsons, McMullen added, “As we near the close of the FTC's preliminary injunction hearing, we are confident in the facts and the strength of our position. The food industry has always been competitive and will continue to be after this merger. We are committed to closing this merger because bringing Kroger and Albertsons together will provide meaningful and measurable benefits—lower prices, secure jobs, and expanded access to fresh, affordable food—for customers, associates, and communities across the country.”
Todd Foley, Interim Chief Financial Officer, also commented.
“Our solid sales results through the first two quarters of the year give us the confidence to raise the low end of our full-year identical sales without fuel guidance by 50 basis points,” said Foley. “We now expect identical sales without fuel to be in the range of 0.75 percent to 1.75 percent. Our positive customer trends are driving sales momentum that we expect to continue in the second half of the year.”
Kroger expects to continue to generate strong free cash flow and remains committed to investing in the business to drive long-term sustainable net earnings growth, as well as maintaining its current investment grade debt rating.
Will we soon hear more about the proposed merger? Stick with DMN to find out.
