Kroger’s board has signed off on a new stock buyback program as the company continues to enjoy growth in sales and increased cash flow.
The supermarket giant will be spending $1 billion on repurchasing its stocks. The new buyback program will replace an existing one with nearly $157 million left as of December 29, 2021.
The launch of the new program comes at a time when the company is continuing to enjoy impressive sales growth. In Q3, the company beat analysts’ expectations, with its sales growing by 7.4% to $31.86 billion. The company reported earnings of 78 cents per share, which was higher than analysts’ estimates of 66 cents per share.
“We are customer-obsessed and focused on leading with fresh and accelerating with digital, which is building momentum in our business and will drive Kroger’s long-term success,” said Kroger’s Chairman and CEO Rodney McMullen.
“Kroger’s share repurchase authorization reflects our board of directors’ confidence in the strength of our free cash flow and our ability to deliver consistently strong and attractive total shareholder returns.”
The company noted that it is continuing to see strong cash flow and it remains committed to driving long-term business growth while maintaining its investment-grade debt rating and returning excess cash flow to shareholders in the form of dividends and share repurchase efforts.