Kroger forecasts upbeat 2020 sales on pandemic boost

Kroger Co reported a 14.6per cent rise in quarterly same-store sales on Friday, helped by a surge in online grocery sales as customers cooked more at home during the COVID-19 pandemic, sending the U.S. supermarket chain's shares up 4per cent.

REUTERS: U.S. supermarket chain Kroger Co said on Friday it expects full-year comparable sales to rise more than 13per cent after reporting better-than-expected quarterly results, driven by a surge in online grocery sales as customers cooked more at home during the COVID-19 pandemic.

The company's shares rose 4per cent before the opening bell.

The virus outbreak has led to consumers cooking more meals at home, leading to rising demand for groceries and canned soups, as people work from home and classes at schools and colleges resume online.

The updated forecast for 2020 follows strong performance in the first half, and on expectations of sustained trends in food-at-home consumption, Chief Financial Officer Gary Millerchip said.

The company also forecast full-year earnings between US$3.20 and US$3.30 per share. Analysts are expecting 2020 comparable sales of 10.15per cent and earnings of US$2.90 per share, according to IBES data from Refinitiv.

For the second quarter ended Aug. 15, Kroger said sales at stores open for more than a year rose 14.6per cent, beating estimates of a 10.96per cent rise, boosted by a jump in online sales.

On an adjusted basis, Kroger earned 73 cents per share, beating estimates of 55 cents per share.

(Reporting by Nivedita Balu in Bengaluru; Editing by Shounak Dasgupta)