LONDON (ShareCast) - (Sharecast News) - US grocery giant The Kroger Co lifted its full-year sales outlook on Friday, after first-quarter numbers beat expectations.
Total company sales at the supermarket chain eased in the three months to 24 May to $45.1bn, from $45.3bn a year previously.

However, identical sales without fuel improved 3.2%, comfortably ahead of Wall Street expectations for 2.4% growth.

Adjusted earnings per share ticked up to $1.49 from $1.43 a year previously, while operating profits rose to $1.32bn from $1.29bn.

Chief executive Ron Sargent said Kroger's "solid" first-quarter numbers had benefited from strong sales in pharmacy, ecommerce and fresh.

"We made good progress in streamlining our priorities, enhancing customer focus and running great stores to improve the shopping experience," he added.

Looking to the rest of the year, Kroger reaffirmed annual targets for operating profits and EPS, but increased its forecast for annual identical sales to between 2.25% and 3.25%. It had previously forecast between 2% and 3%.

David Kennerley, chief financial officer, said: "While first-quarter sales and profitability exceeded our expectations, the macroeconomic environment remains uncertain and as a result, other elements of our guidance remain unchanged."

US consumers and businesses are facing an increasing uncertain economic outlook, as Donald Trump's sweeping tariff regime raises fears of persistent inflation.

Last month bellwether Walmart warned of possible price hikes in response to the tariffs, while rival Target cut its annual sales forecast following a weaker-than-expected first quarter.

Shares in Kroger put on 3% in pre-market trading.

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