Shares of Kroger (KR) surged 5.06% in pre-market trading on Friday after the supermarket chain reported better-than-expected first-quarter earnings and raised its annual sales forecast. The company's strong performance, driven by robust grocery demand and growth in key segments, has impressed investors despite ongoing economic uncertainties.

Kroger reported first-quarter adjusted earnings per share of $1.49, surpassing analysts' expectations of $1.46. The company's identical sales growth without fuel reached 3.2%, exceeding the consensus estimate of 2.4%. This strong performance was attributed to positive momentum in pharmacy, eCommerce, and fresh categories. Notably, Kroger's eCommerce sales saw a significant increase of 15% compared to the same period last year.

In response to the strong sales results, Kroger raised its full-year 2025 identical sales growth forecast to a range of 2.25% to 3.25%, up from the previous guidance of 2% to 3%. However, the company maintained its overall fiscal year guidance, with adjusted earnings per share expected to be between $4.60 and $4.80. This cautious approach reflects the uncertain macroeconomic environment, as noted by Kroger's new CFO David Kennerley. Despite these challenges, investors appear optimistic about Kroger's ability to navigate the current market conditions and capitalize on resilient grocery demand.