SEGR

Kroger Raises Guidance After Solid Earnings Report

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Image Source: Kroger Co – First Quarter of Fiscal 2021 IR Earnings Presentation By Callum Turcan Grocers are facing tough year-over-year comparisons due to the pantry stockpiling dynamic seen in 2020 in the wake of the coronavirus (‘COVID-19’) pandemic, though demand for consumer staples products remains healthy. On June 17, Kroger Co (KR) reported first quarter earnings for fiscal 2021 (period ended May 22, 2021) that beat both consensus top- and bottom-line estimates. Kroger’s management team also noted how the grocer views the current inflationary landscape, which we will cover in this note. Earnings Update and Guidance Boost Though Kroger’s same-store sales fell by 4.1% in the fiscal first quarter, on a two-year stack basis (the sum of its same-store … Read more

Walmart’s E-Commerce Growth Supports Long Term Dividend Strength

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Image Source: Mike Mozart By Brian Nelson, CFA On Tuesday, May 18, Walmart (WMT) reported first-quarter 2022 results for the 13-week period ended April 30, 2021. Leading the charge was a 37%, 47%, and 49% leap in e-commerce sales in its Walmart U.S., Sam’s Club, and Walmart International segments, respectively, with management noting that sales through its online channel have “more than doubled over the last two years.” Walmart continues to embrace e-commerce and omni-channel capabilities, and that bodes well for the long-term sustainability of its dividend payout, in our view. Walmart’s shares yield ~1.5% at the time of this writing, and they have years of dividend growth ahead of them, in our view. As one of the largest big … Read more