Kroger still in 'uncertainty' mode despite 92% jump in digital sales: CEO
Kroger's earnings and sales exceeded expectations
Kroger is still dealing with "uncertainty" because of the coronavirus pandemic despite a good first quarter, Kroger CEO Rodney McMullen said on Thursday.
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Kroger said its digital sales grew 92 percent in its first quarter when it reported earnings on Thursday.
"I'm so proud of our teams, and we've been able to hire over 100,000 people — 40,000 of those in our digital teams," McMullen told "Mornings with Maria." "Digital is one piece of that. We're finding some customers like to engage in an environment either pick-up or delivery, where it is lower impact, less interaction."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| KR | THE KROGER CO. | 59.23 | +0.68 | +1.15% |
Kroger's earnings and sales exceeded expectations with $42 billion in sales in the first quarter compared to $37 billion for the same quarter in 2019. However, the company is not reaffirming or providing new guidance for 2020.
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"We are not reiterating guidance," McMullen said. "What we've said is there’s a lot of uncertainty. Obviously, we're still in the middle of COVID. We're investing a lot of money to make sure from a safety standpoint we are keeping our customers and our associates safe."
A shopper looks at beef at a Kroger store in Atlanta underneath a sign limiting shoppers to three packages of ground beef on Tuesday, May 5, 2020. (AP Photo/Jeff Amy)
Even as meat prices have spiked, Kroger was able to keep prices reasonable, McMullen said.
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"We continue to do everything we can to minimize any cost increases," he said. "If you look at meat, we've not even close passed through the cost that we've incurred."
Kroger is the largest supermarket chain in the U.S.