Kroger Beats Earnings Estimates and Issues Upbeat Outlook Despite Merger Uncertainty
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Shares of Kroger surged after beating Q4 revenue and earnings estimates. The company also issued an upbeat profit outlook for the full year.
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Kroger says shoppers feel better about grocery prices despite ongoing inflation concerns. However, the company expects same-store sales growth to continue.
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The FTC recently challenged Kroger's planned acquisition of Albertsons, claiming it would reduce competition and could threaten jobs and wages.
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Kroger argues the merger will lower prices, boost wages, and improve service. Hearing dates with the FTC are expected in mid-to-late summer.
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Kroger promised to secure union jobs despite typical criticism of mergers. The company remains "laser focused" on closing the Albertsons deal.