No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - American big-box retailer Kroger swung to a loss of more than $1.5bn in its third quarter as rising costs offset an increase in sales, causing shares to drop sharply on Thursday.
The company reported a loss of $1.54bn over the three months to 8 November, equal to $2.02 a share, compared with a $618m or 85cents-a-share profit the year before.
Operating, general and administrative expenses totalled $8.47bn for the quarter, up from $5.90bn the year before, mainly due to the sale of Kroger Specialty Pharmacy and investments in associate wages and benefits, the company said.
Meanwhile, the firm decided to make an accelerated contribution to multi-employer pension plans in the third quarter, which drove up expenses.
On the top line, total sales were $33.9bn for the quarter, up from $33.6bn the year before, despite the prior-year conclusion of $387m from Kroger Specialty Pharmacy sales.
Excluding fuel and Kroger Specialty Pharmacy, sales were up 2.6% over last year.
"Kroger delivered another quarter of strong results reflecting meaningful progress on our strategic priorities," said chair and chief executive Ron Sargent.
"Our eCommerce business posted another quarter of impressive performance. We have now completed our strategic review which we expect will make our eCommerce business profitable in 2026."
The stock was down 5.3% at $62.70 by 1615 GMT.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.