Kroger is set to report second-quarter earnings before the bell on Friday.
Here’s what Wall Street is expecting, based on a survey of analysts by Thomson Reuters:
- Earnings-per-share: 39 cents, Thomson Reuters said.
- Revenue: $27.5 billion, according to those analysts who cover the company.
- Same-store sales: growth of 0.4 percent, according to FactSet.
Kroger — more than any of America’s supermarket chains — has taken a beating ever since June 16, the day that Amazon announced its plans to acquire Whole Foods.
Shortly after the news was publicized, Kroger CEO Rodney McMullen told CNBC he thought Whole Foods was a “good fit” for Amazon. “Amazon wanted to do something from the physical asset standpoint,” McMullen added. “We are trying to take care of customers.”
Now that its deal is complete, Amazon has started lowering prices on produce and other items at Whole Foods’ stores, promising “more to come.” In turn, Kroger has suffered even more, especially with big-box retailers Target and Wal-Mart upping the ante on their own grocery offerings.
Just this week, Wal-Mart announced it has opened its 1,000th online grocery pickup location, right in Amazon’s backyard of Seattle. Meantime, Kroger has been working with grocery delivery service Instacart to deliver items more quickly to shoppers.
In June, and just a day before Amazon unveiled the Whole Foods deal, Kroger said it would cut its full-year adjusted earnings outlook to a range of $2 to $2.05 per share, down from its previous guidance of $2.21 to $2.25. The chain cast blame on deflation in food prices and increased competition.
As of Thursday’s close, Cincinnati-based Kroger has seen its stock fall near 35 percent this year.
Source: FactSet
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