KR: Top Line A Little Light But It’ll Be Fine
Personal favorite and the nation’s leading grocer Kroger (KR) just reported 2Q23 earnings. The top line appears to have come in a little light with comps of only +1.0% (+2.6% excluding the termination of their relationship with Express Scripts). I assume that’s why shares are currently -3% in the premarket. Nevertheless, KR maintained full year guidance for comps of +1.0% to +2.0% and EPS of $4.45-$4.60. Despite what appears to be a little hiccup, KR is too solid of a company at too cheap of a valuation to get hit too hard IMO. I sold some KR $43.50 Sep8 Puts for ~40 cents so hopefully those will stay out of the money and expire worthless.