Kroger Shares Gain On Q4 Earnings Beat, Robust FY22 Outlook

Kroger Co KR reported fourth-quarter FY21 sales growth of 7.5% year-on-year, to $33.05 billion, beating the consensus of $32.86 billion.
Identical Sales without fuel increased 4%; the two-year stack increased 14.6%. Digital sales two-year stack grew 105%.
Adjusted EPS of $0.91 beat the consensus of $0.74.
The gross margin was 22.2%, and the FIFO gross margin rate, excluding fuel, increased 3 basis points Y/Y.
The operating income was $965 million versus a loss of $(158) million last year. The operating margin was 2.9%.
Operating, general and administrative expenses declined 13% Y/Y to $5.5 billion.
Kroger held $2.9 billion in cash and equivalents as of January 29, 2022. Net cash provided by operating activities for the twelve months totaled $6.2 billion.
The company had a net total debt of $11.7 billion as of January 29, 2022.
Outlook: Kroger sees FY22 adjusted EPS $3.75 - $3.85, above the consensus of $3.45. The company expects FY22 identical sales growth without fuel of 2% - 3%.
Price Action: KR shares are trading higher by 11.6% at $55.07 on the last check Thursday.

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