Kroger says cyclosporiasis outbreak cost over $100M in lost sales

The summer cyclosporiasis outbreak that afflicted thousands of Americans with severe diarrhea prompted Kroger shoppers to avoid the produce section, company executives said on Sept. 11.

In a conference call with investors, CEO Greg Foran said the health crisis shaved 0.35% off its identical store sales excluding fuel, which company financials suggest slashed its sales by more than $100 million.

While health officials blamed the outbreak on iceberg lettuce, Foran said shoppers avoided the entire produce section.

“Customers responded more broadly across produce,” Foran said.

Kroger’s comments came as the Cincinnati-based supermarket giant disclosed its financial results.

Kroger posted a $641 million profit on sales of $24.6 billion. The company’s profit beat Wall Street analysts’ forecasts, but its sales came in slightly lower. Analysts had predicted Kroger would log sales of $34.7 billion, according to Zacks Investment Research of Chicago.

Kroger also cut its revenue forecast for the year by more than half. The grocer said identical store sales excluding fuel will increase between 0.2% and 0.8% in 2026, down from a previous forecasted range of 1% to 2%, the company said. A key metric, identical store sales excluding fuel measure growth excluding volatile gas prices as well as sales…

Original source: https://www.usatoday.com/money/