Barcode
09-23

$Kroger(KR)$ 📊☢️🦐 Kroger 2025: The Year of Radioactive Shrimp?

Kroger’s Q2 earnings beat was crisp and fresh, but the FDA’s shrimp recall added a radioactive twist. It’s not every day that margins expand while customers question if their seafood glows in the dark.

🟢 Identical sales surged 3.4%, triple last year’s pace, and adjusted EPS climbed nearly 12%. Management raised full-year guidance across sales, profit, and EPS, underlining confidence in the core business. Pharmacy, Fresh, and eCommerce all led the charge; online sales leapt 16%. That momentum suggests Kroger is gaining scale leverage exactly where it needs it.

🔴 Yet bears have plenty of seasoning. Flat total sales reflect the Specialty Pharmacy divestiture. LIFO charges jumped 195% YoY, showing inventory costs still rising. Net debt swelled on accelerated buybacks. And the shrimp saga? It’s the second recall in 30 days from the same Indonesian supplier—oversight lapses risk eroding trust.

🟡 Margins ticked up 40 bps to 22.5%, but part of that stemmed from the Specialty Pharmacy exit. The sustainability of gains from lower shrink and supply chain efficiencies will matter more going forward.

Technicals: Charts show persistent pressure with $KR sliding to $64.70, hugging lower Keltner and Bollinger bands. Momentum remains bearish across 4H and 30m frames. Short-term floors sit near $63.50, while $67–$68 remains heavy resistance. Until the stock reclaims mid-channel levels, near-term rallies may be shrimp-sized.

👉❓The question now: can Kroger keep serving investors a fresh margin story while simultaneously cleaning up radioactive shrimp headlines, or will the contamination risk leave a bigger aftertaste in consumer sentiment than the earnings beat can mask?

📢 Don’t miss out! Like, Repost and Follow me for exclusive setups, cutting-edge trends, and insights that move markets 🚀📈 I’m obsessed with hunting down the next big movers and sharing strategies that crush it. Let’s outsmart the market and stack those gains together! 🍀

Trade like a boss! Happy trading ahead, Cheers, BC 📈🚀🍀🍀🍀

# 💰Stocks to watch today?(19 Dec)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment（7）

  • Top
  • Latest
  • Tui Jude
    ·09-23
    TOP
    📊I can’t ignore how margins crept higher while the LIFO charge nearly tripled. That dynamic feels similar to what we saw with $COST managing inventory cost pressure while still expanding profitability. Kroger’s execution in pharmacy and fresh looks well-timed.
    Reply
    Report
  • Hen Solo
    ·09-23
    TOP
    🛒The stock hugging the lower Keltner band shows technical pressure, but raising guidance is a serious credibility marker. Reminds me of when $TGT rallied after raising its full-year outlook despite messy headlines. Kroger’s focus on core stores is clearly resonating.
    Reply
    Report
  • Queengirlypops
    ·09-23
    TOP
    Shrimp scandal aside the real alpha is Kroger stacking sales momentum and raising the FY guide when everyone’s cautious. That 16% online pop is crazy strong, feels like they’re quietly pulling an $AAPL ecosystem move but in grocery. I’m watching that $63.5 level like a hawk
    Reply
    Report
  • Cool Cat Winston
    ·09-23
    TOP
    🍤The shrimp recall makes me think hard about reputational risk, but Kroger’s 16% eCommerce growth is the bigger signal. If they keep scaling digital like $WMT did with delivery, the short-term headlines won’t outweigh long-term channel strength.
    Reply
    Report
  • Kiwi Tigress
    ·09-23
    TOP
    ☢️🦐🍤☢️ scandal aside the real alpha is Kroger stacking sales momentum and raising the FY guide when everyone’s cautious. That 16% online pop is crazy strong, feels like they’re quietly pulling an $AAPL ecosystem move but in grocery. I’m watching that $63.5 level like a hawk
    Reply
    Report
  • Venus Reade
    ·09-23
    Buffet owns this and Cramer said buy..look what happened last time it got this low..it spiked to $74

    Reply
    Report
  • Valerie Archibald
    ·09-23
    Kroger still has name brand groceries. Walmart has forced its great value brand on many items in both frozen food and other areas..Stouffer's is a prime example. Not a fan of Walmart great value brand.

    Reply
    Report