Kroger Shares Slump Over 8% After Gross Margin Disappoints in Q2

Kroger Shares Slump Over 8% After Gross Margin Disappoints in Q2

Kroger shares slumped over 8% on Friday after the food retailer said its gross margin – business’s net sales minus the cost of goods sold – fell to 21.4% year-on-year during the second quarter from 22.8% a year ago despite beating earnings estimates.

The company said this was primarily due to continued price investments, and higher shrink and supply chain costs, partially offset by sourcing benefits and growth in the alternative profit business.