(Reuters) – Kroger Co forecast annual same-store sales and profit above market expectations on Thursday, betting on strong demand for groceries as the pandemic-induced home-cooking trend holds strong, sending shares up about 4% in premarket trading.
Despite the reopening of restaurants and bars, Americans have stuck to cooking and eating more at home as they did during the lockdowns, due in part to hybrid-work trends, boosting sales at grocers.
The company said it expects adjusted same-store sales to rise 2% to 3% in fiscal year 2022, compared with analysts’ average estimate of a 2.1% increase, according to IBES data from Refinitiv.
The supermarket chain, which operates nearly 2,800 stores across the United States, said it expects adjusted earnings per share between $3.75 and $3.85 for the year, well above estimates of $3.45.
Kroger’s same-store sales, excluding fuel, climbed 4% in the fourth quarter ended Jan. 29, topping expectations for a 2.84% rise.
Big-box rival Walmart also forecast higher earnings and sales for the year after posting its largest-ever holiday season sales last month, while Target earlier this week forecast an upbeat 2022 saying it expects supply chain pressures to ease later in the year.
(Reporting by Deborah Sophia in Bengaluru; Editing by Vinay Dwivedi)
