(Reuters) – Kroger Co raised its expectations for 2022 profit on Thursday, betting on steady demand for its groceries and household essentials in an inflationary environment.
Major U.S. retailers including Walmart Inc and Target Corp have in recent weeks sounded alarm bells over the toll decades-high inflation is taking on U.S. shoppers, stoking fears the economy could be heading into recession.
But with people prioritizing spending on food and household essentials, a shift typical during downturns, Kroger has not been forced to resort to the steep discounts other retailers have required to move stock.
The U.S. supermarket chain forecast earnings per share in a range $3.85 to $3.95 for 2022, compared with its prior range of $3.75 to $3.85. Analysts on average expect $3.85, according to IBES data from Refinitiv.
The company also forecast adjusted same-store sales to rise 2.5% to 3.5% in 2022, compared with its prior range of 2% to 3%. Analysts on average expect 3.2%.
Same-store sales, excluding fuel, climbed 4.1% in the first quarter, compared with estimates of a 4.2% rise.
(Reporting by Praveen Paramasivam in Bengaluru; Editing by Aditya Soni)