Kroger
stock was falling Friday after the grocer said it recorded a $1.4 billion charge in its second quarter to settle a majority of opioid claims brought against the company.
Kroger
(ticker: KR) also posted fiscal second-quarter adjusted earnings of 96 cents, rising from the prior year and beating analysts’ calls for 91 cents, according to FactSet. Sales at the grocer of $33.9 billion missed expectations of $34.1 billion. Same-store sales rose 1%, below expectations for a gain 1.3%. The company reaffirmed its fiscal-year guidance.
Kroger said it agreed to pay up to $1.2 billion to states and subdivisions and $36 million to Native American tribes in funding for abatement efforts, as well as about $177 million to cover attorneys’ fees and costs to settle the majority of opioid claims, according to a press release.
In addition, Kroger and
Albertsons Cos.
(ACI) announced they had reached a deal to divest hundreds of stores to C&S Wholesale Grocers, putting the companies one step closer toward finalizing their proposed merger. Under the terms of the deal, C&S will buy 413 stores, eight distribution centers, two offices, and five private label brands from Kroger for about $1.9 billion, the companies said.
Shares of Kroger were falling 1.4% to $44.90 in premarket trading.
Write to Emily Dattilo at [email protected]
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