Customers are continuing to seek value CEO
Reaffirms FY samestore sales, profit forecasts
Q1 identical sales, excl fuel, 0.5 vs est. 0.13
Q1 adj. EPS 1.43shr vs est. 1.35shr

June 20 Reuters Kroger on Thursday struck a cautious tone on consumer spending in the near term as it reaffirmed its fullyear samestore sales and profit forecasts despite topping firstquarter estimates.

Shares of the company reversed early gains to drop as much as 4.2 as executives said they expect secondquarter earnings to decline at a level similar to the reported quarter.

Kroger posted a 5.3 drop in firstquarter adjusted profit to 1.43 per share, but still topped estimates of 1.35.

As inflation moderates, we expect customer sentiment to continue improving, but nearterm many customers are managing economic uncertainty, said CEO Rodney McMullen.

American shoppers have been searching for more deals and discounts due to strained household budgets and depleting pandemicera savings, prompting many to purchase more affordable and lowerpriced items at onestop retailers such as Walmart.

However, Kroger39;s identical sales, excluding fuel, rose 0.5 in the first quarter, compared with analysts39; estimate for 0.13 growth, according to LSEG data.

McMullen said the company saw a positive momentum from budgetconscious households in the quarter.

Customer visits were up 5.1 yearoveryear on average between February and May this year, according to data from Placer.ai.

Kroger has been offering…