CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Kroger (KR) spikes 12% on Q3 earnings and raised guidance

By Robert Davis

16:45, 2 December 2021

Pickup sign outside of Kroger store
Kroger stock is up nearly 20% in last six months. Photo: Shutterstock

American grocery retailer Kroger saw its stock soar more than 12% to $45.16 per share after the company reported its third quarter earnings on Thursday and raised its profit guidance for the rest of the year.

Including Thursday’s gains, the stock has increased by nearly 20% in value over the last six months and is up almost 41% on an annualised basis.

Earnings details

According to the Cincinnati, Ohio-based company’s earnings report, Kroger made over $31.8bn (£23.89bn) in total sales and brought in an operating profit of $868m for the quarter.

Excluding fuel sales, Kroger’s total sales grew by 2.9% over last year’s Q3 total of $29.7bn.

The company also paid out earnings per share (EPS) of $0.64, compared to analysts' estimates of $0.66, according to Yahoo Finance.

Rodney McMullen, Kroger’s chief executive, credited the company’s “agility, and the commitment from our amazing associates” for its third quarter successes.

Gold

2,040.11 Price
-0.060% 1D Chg, %
Long position overnight fee -0.0191%
Short position overnight fee 0.0109%
Overnight fee time 22:00 (UTC)
Spread 0.30

XRP/USD

0.62 Price
+0.640% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

BTC/USD

38,324.80 Price
+0.810% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

US100

16,064.70 Price
+0.350% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 1.8

Digital investments

The company also made several strategic investments in its digital operations to enhance its customer experience and improve efficiency.

For example, Kroger shared plans to open five new fulfillment centres across the US to improve its Kroger Delivery Now partnership with Instacart and Boost by Kroger Plus programmes.

Kroger is also in a partnership with Bed, Bath and Beyond to offer a limited e-commerce experience via Kroger.com where customers can purchase home and baby products.

Outlook

Kroger also raised its guidance as it heads into the fourth quarter and for the rest of the fiscal year.

The company now expects its two-year sales stack to be between 3.7% to 13.9% with an adjusted net EPS range of $3.40 to $3.50.

Read more: Bed Bath & Beyond shares jump 80% following Kroger announcement

Related topics

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading