Kroger Co. KR, -3.76% reported a fiscal third-quarter profit that beat expectations, but shares of the grocery store chain slumped 1% in premarket trade Thursday, weighed down by the sharp selloff in the broader market. Net income fell to $317 million, or 39 cents a share, from $397 million, or 44 cents a share, in the same period a year ago. Excluding non-recurring item, adjusted earnings per share came to 48 cents, above the FactSet consensus of 43 cents. Sales decreased 0.3% to $27.67 billion, just above the FactSet consensus of $27.65 billion, while digital sales grew 60%. The company cut its 2018 net EPS outlook to $3.80 to $3.95 from $3.88 to $4.03, to reflect the market value adjustment related to its investment in Ocado, but affirmed its adjusted EPS guidance of $2.00 to $2.15. “Kroger is transforming our business model. We’re moving from a traditional grocer to a growth company with both a strong customer ecosystem that offers anything, anytime, anywhere, and asset-light, high-margin alternative partnerships and services,” said Chief Executive Rodney McMullen. The stock has shed 12% over the past three months through Tuesday, while the Dow Jones Industrial Average DJIA, -3.10% has lost 3.7%.
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