Kroger Tumbles Most in a Year as Biggest Grocer Reduces Profit Forecast

Kroger Co., the largest U.S. grocery- store chain, tumbled the most in a year after lowering the top end of its full-year profit forecast.

Kroger projected per-share earnings of $1.65 to $1.78, compared with its previous forecast of $1.60 to $1.80, according to a statement today by the Cincinnati-based retailer. The average of analyst estimates in a Bloomberg survey was $1.78.

The slow economic recovery is hurting grocery sales and consumers are “cautious in their spending,” Chief Executive Officer David Dillon told analysts on a conference call. The recovery is slower and weaker than Kroger had expected and competition remains “intense,” he said.

Kroger sank $2.23, or 9.4 percent, to $21.63 at 4 p.m. in New York Stock Exchange composite trading, the biggest decline since Dec. 8, 2009. The shares have gained 5.4 percent this year.

-- Editor: Robin Ajello, Cecile Daurat

To contact the reporter on this story: Chris Burritt in Greensboro, North Carolina, at 1348 or

To contact the editor responsible for this story: Robin Ajello in New York at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.