Recognized as one of the major players in the US retail industry, the Kroger Group continues to make strong efforts to maintain a good position in the sector. The American company has taken stock of its business for the second quarter of 2021. It has just released the results from this quarterly review. Overall, the company's profits declined during the quarter. However, its sales increased slightly.
During the second quarter of 2021, Kroger Group saw a sharp decline in profits. Over the entire three-month period, the retailer saw its net profit fall remarkably. In fact, it is established at 467 million dollars (or 61 cents per share).
In the same period of the previous year, net profit had reached 819 million dollars (1.03 dollar per share). However, excluding special items, EPS for the quarter was 80 cents per share. This is well above market expectations. The market was expecting 64 cents for Q2-2021.
In the second quarter, the Cincinnati-based company did better in terms of quarterly sales, exceeding analysts' expectations. For the quarter as a whole, the retailer's total sales amounted to $31.68 billion. A year earlier, they were $30.49 billion.
For its part, the market was expecting $30.64 billion. However, excluding gasoline and on a like-for-like basis, quarterly sales reported a 0.6% decline from Q2 2020. Compared to Q2-2019, they still increased by 14%.
On the other hand, the Kroger Group continues to benefit from the e-commerce boom since the advent of Covid-19. In fact, the retailer's online sales are showing strong growth of 114% during Q2-2021.
As for its outlook for the current fiscal year, Kroger Group is confident of business growth. As such, it has raised its annual profit forecast. For the full year 2021, the company is now targeting adjusted EPS in the range of $3.25 to $3.35.
Previously, it was forecasting between $2.95 and $3.1 for the current full year. In addition, the company's new forecast is higher than the market. The latter expects adjusted EPS of $3.09 for 2021.
Kroger is an American retail company founded in 1883 and based in Cincinnati, USA. Its business is retailing. The group is one of the largest food distributors in the United States.
In addition, all of the company's sales are generated in the United States. It has a workforce of approximately 465,000 employees. For the whole of last year's financial year, the group's revenues showed a marked increase. The company's turnover was $132.5 billion.