Kroger Company ( KR ) shares are rising after it reported fourth-quarter FY23 sales growth of 6.4% year-on-year to $37.064 billion, slightly missing the analyst consensus estimate of $37.112 billion.

Identical Sales without fuel decreased by 0.8%. Adjusted EPS of $1.34 and Adjusted EPS of $1.14, excluding the 53rd week, beat the consensus of $1.13.

Gross margin was 22.7%, and the FIFO gross margin rate, excluding fuel, increased by 13 basis points Y/Y.

Operating, general and administrative expenses rose 7.4% Y/Y to $6.3 billion. Operating margin expanded from 2.4% to 3.2%, and operating income for the quarter jumped 44.5% to $1.2 billion.

Kroger ( KR ) held $1.88 billion in cash and temporary cash investments as of February 3, 2024. Operating cash flow year-to-date totaled $6.78 billion. The company had a net total debt of $10.6 billion as of February 3, 2024.

“As customers manage macroeconomic pressures, we are lowering prices and offering even more ways to save with personalized promotions and rewards,” said Chairman and CEO Rodney McMullen.

Outlook: Kroger ( KR ) sees FY24 adjusted EPS of $4.30-$4.50 versus an estimate of $4.34.

Kroger ( KR ) now expects full-year identical sales without fuel to be 0.25%-1.75%, Adjusted FIFO operating profit of $4.6 billion-$4.8 billion and capital expenditure of $3.4 billion – $3.6 billion.

Price Action: KR shares are trading higher by 7.11% at $54.08 on the last check Thursday.