Kroger extended its streak of sales misses — but that’s not hurting its profits

Kroger defied market trends Thursday, posting stock gains during a broader selloff after reporting stronger-than-expected quarterly profits despite ongoing sales shortfalls. The grocery chain extended its streak of missing sales targets but offset declines by improving profit margins, earning more per dollar of revenue. Investors reacted positively to the earnings beat, pushing shares higher as Kroger demonstrated resilience amid inflationary pressures and shifting consumer spending habits. Analysts noted the company’s cost-cutting measures and pricing strategies as key drivers of profitability, even as same-store sales growth remained sluggish. The results underscore Kroger’s ability to prioritize profitability over volume, a shift that may reshape investor expectations for traditional retailers in a challenging economic climate.