By Denny Jacob

Kroger posted lower-than-expected sales in its latest quarter, the first results since its terminated deal with Albertsons and Rodney McMullen's sudden departure.

The supermarket chain posted net income of $634 million, or 90 cents a share, for the fourth quarter ended Feb. 1, down from $736 million, or $1.01 a share, in the prior-year period.

Stripping out certain one-time items, earnings came in at $1.14 a share. Analysts polled by FactSet expected $1.11 a share.

Sales declined to $34.31 billion from $37.06 billion. Analysts polled by FactSet expected $34.57 billion.

The Cincinnati company's results come just days after the abrupt resignation of long-time Chief Executive Officer and Chairman Rodney McMullen over personal conduct. They're also the first since a federal judge blocked a $20 billion deal to takeover smaller rival Albertsons.

"I am committed to ensuring that we execute with speed and that our teams continue to advance our go-to-market strategy," interim CEO Ron Sargent said.

Kroger on Thursday said it expects to continue to pay its quarterly dividend and that it will increase over time. The company also noted it repurchased 65.6 million shares during the quarter as part of a previously announced $5 billion accelerated share repurchase program.

Analysts have said the nixed deal frees up cash and a resumption of share repurchases after a pause of more than two years will strengthen Kroger's balance sheet.

For 2025, Kroger forecast identical sales without fuel to grow between 2% and 3%. The company also expects adjusted earnings per-share between $4.60 and $4.80, while Wall Street expected $4.82 a share.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

March 06, 2025 08:24 ET (13:24 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.