Demand for groceries, including produce, meat and soups, has
seen an unprecedented surge in recent months, as concerns about
the length of stay-at-home orders had forced shoppers to stock
up, with most restaurants also shutting dine-in areas or
offering a limited menu.
Kroger even put purchase limits on select products, including
cold, flu and sanitary products, ground beef, and fresh pork, at
some of its stores at the height of virus-led stockpiling.
The company, however, did not reaffirm or provide new 2020
forecast. It had previously projected same-store sales to
increase more than 2.25%, while it expected to earn between
$2.30 to $2.40 per share.
"The COVID-19 pandemic has dramatically changed the outlook for
food retail in 2020 ... There are still many unknown factors
related to the long-term impact of COVID-19," Chief Financial
Officer Gary Millerchip said.
Digital sales for the quarter skyrocketed 92%, compared with the
previous quarter's 22% increase.
Sales rose 11.5% to $41.55 billion, well above the average
estimate of $40.72 billion. Excluding the impact of fuel prices,
sales at stores open for more than a year rose 19% in the first
quarter ended May 23.
Net earnings attributable to Kroger rose 57% to $1.21 billion,
or $1.52 per share. Excluding one-time items, Kroger earned
$1.22 per share, beating market estimates of $1.09.
(Reporting by Praveen Paramasivam in Bengaluru; Editing by
Subhranshu Sahu)
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