Kroger Was the S&P 500’s Top Loser on June 15



Top gainers and losers

The top gainers in the S&P 500 on June 15, 2017, were:

  • H&R Block (HRB) rose 3.0%.
  • Harley-Davidson (HOG) rose 2.9%.
  • Alliance Data Systems (ADS) rose 2.8%.
  • Tegna (TGNA) rose 2.7%.
  • C.H. Robinson Worldwide (CHRW) rose 2.4%.

The top losers in the S&P 500 on June 15, 2017, were:

  • Kroger (KR) fell 18.9%.
  • Nucor (NUE) fell 7.6%.
  • Whole Foods Market (WFM) fell 6.7%.
  • Mattel (MAT) fell 6.7%.
  • Freeport-McMoRan (FCX) fell 4.9%.
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Kroger fell on Thursday. Declining store sales in the first quarter and lower guidance dented the sentiment in the stock. Kroger opened gap down on Thursday and trended lower to the lowest levels since January 2014. Kroger’s net income in the first quarter was $303 million—less than revenue of $696 million in 1Q16.

Kroger’s earnings per share fell from $0.72 per share in 1Q16 to $0.32 per share in 1Q17. According to the report released on June 15, Kroger’s same-store sales, excluding fuel, fell 0.2% in the first quarter. According to management, the highly competitive environment along with commodities’ cost deflation caused the decline in store sales.

Tough competition 

Kroger is facing competition from other major grocery retailers, especially Walmart. Promotions run by its peers, especially on the eggs and milk, forced Kroger to lower its prices. Price cuts were behind Kroger’s lower store sales. Kroger cut its 2017 guidance from $2.21–$2.25 per share to $2.00–$2.05 per share. On Thursday, Kroger fell 18.9% and closed the day at $24.56.

In the next part, we’ll discuss how the US dollar and US Treasury yields performed in the early hours on June 15.


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