The Ups and Down of Kroger Stock in 2017



Kroger stock in 2017

Kroger (KR) is the largest supermarket in the United States. It had trailing 12-month sales of $119 billion and posted stock gains of ~77% between 2014 and 2016. However, 2017 was a tough year for the supermarket giant since it faced several challenges.

In this series, we’ll take a look at Kroger stock in 2017. We’ll also look at changes in Wall Street analysts’ recommendations throughout the year and how the company is placed at the beginning of 2018.

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What drove Kroger stock at the beginning of 2017

Kroger stock struggled in 2017, falling 15% in the first three months. Most of the fall came after the company reported its first decline in sales comps (comparables) for the past 53 quarters. Management cited deflation as the key headwind. However, it’s worth noting that Kroger cruised ahead of the consensus estimates for both its top and bottom lines.

How was Kroger stock placed in mid-2017?

Kroger stock fell further toward the middle of the year. By the end of June 2017, after its quarterly results in the middle of June, the stock fell 32% compared to the beginning of the year.

The company managed to report in-line earnings and a better-than-expected top line. Sales comps were once again negative. It also lowered its 2018 adjusted EPS (earnings per share) guidance, which caused its stock to fall 19% in a single trading session.

Another major blow came as Amazon (AMZN) announced the acquisition of Whole Foods Market on June 16, 2017, just a day after Kroger’s first-quarter results. KR stock fell another 9.3% after the announcement.

Next, let’s look at Kroger’s stock performance in the second half of the year.


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