UPDATE 1-Kroger raises annual profit forecast on resilient grocery demand
(Adds profit forecast, details on results)
June 17 (Reuters) - Kroger Co on Thursday raised its forecast for annual profit and posted a smaller-than-expected decline in quarterly same-store sales that signaled a gradual easing in demand for grocery from levels seen at the height of the pandemic.
The supermarket chain forecast adjusted profit per share between $2.95 and $3.10 in 2021, versus its prior range of $2.75 to $2.95. Analysts on average were expecting earnings of $2.86 per share.
The grocer has bolstered its business through its "Restock Kroger" program and its partnership with UK-based Ocado Group Plc to use robots to more quickly stock, sort and dispatch goods. It has also tied-up with third parties such as Instacart Inc to handle deliveries.
Same-store sales, excluding fuel, fell 4.1% in the first quarter ended May 22, compared with estimates of a 6.7% decline, according to IBES data from Refinitiv.
Kroger said it expects 2021 adjusted same-store sales to fall between 2.5% and 4%, while it had earlier projected a decline between 3% and 5%. Analysts on average expect same-store sales to decline 4.38%, according to IBES data from Refinitiv. (Reporting by Praveen Paramasivam in Bengaluru; Editing by Sriraj Kalluvila)