10:37 AM EST, 03/06/2025 (MT Newswires) -- Kroger's ( KR ) fiscal fourth-quarter earnings came in ahead of market estimates but revenue missed forecasts, while the supermarket chain issued a full-year bottom-line outlook below Wall Street's expectations.

The company anticipates adjusted earnings to be in a range of $4.60 to $4.80 per share for fiscal 2025, compared with the consensus on FactSet for $4.82. In the 2024 fiscal year, adjusted EPS declined to $4.47 from $4.76 annually.

Identical sales growth, excluding fuel, is pegged at 2% to 3% while the Street is looking for a gain of 2.1%. Last year, same-store sales increased 1.5%.

"Investments made to diversify our business have added more ways for Kroger ( KR ) to drive sustainable future growth," interim Chief Financial Officer Todd Foley said in a statement. "The strength of our model and the momentum in our business give us confidence in our 2025 growth plans."

Kroger ( KR ) shares rose 2.8% in Thursday trading.

For the three-month period ended Feb. 1, the company's adjusted EPS decreased to $1.14 a share from $1.34 the year before, but topped the average analyst estimate of $1.11. Sales fell to $34.31 billion from $37.06 billion, just shy of the Street's view for $34.57 billion.

Identical sales without fuel advanced 2.4%, rebounding from a 0.8% decline a year ago, and surpassing the market's forecast for growth of 2%. First-in, first-out gross margin rate, excluding fuel, rose by 54 basis points on a yearly basis mainly due to the sale of the company's specialty pharmacy business completed in October and lower shrink, which refers to inventory lost due to theft or internal issues.

"Kroger ( KR ) is operating from a position of strength, delivering fourth-quarter results that came in ahead of expectations due to the strength of our model and the disciplined execution of our teams," interim Chief Executive Ron Sargent said.

Earlier in the week, Sargent took over as CEO on an interim basis after Rodney McMullen departed the grocery store operator following an investigation into his personal conduct.

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