Kroger Co raised its annual sales and profit forecasts on Friday as inflation-hit consumers drive up demand for groceries and household essentials at the cost of discretionary goods.
Shares of the Cincinnati, Ohio-based grocer whose quarterly results also topped estimates, rose nearly 4 percent.
Grocery retailers tend to perform well in an economic turmoil as cash-strapped consumers prioritize spending on food and other essentials, with Kroger also benefiting from demand for its cheaper in-house items such as cheese and meats.
“We saw incredible engagement in our brands during the quarter with identical sales growth of 10.2 percent compared to last year,” Kroger Chief Executive Officer Rodney McMullen said….