Diamonds and Dogs
Kroger (KR) on a shopping spree. The grocery store company is up 10% to a four month high following earnings and raised guidance. The grocery store has been making more investments in online offerings while shedding more traditional convenience stores in an effort to become more competitive. Earlier this year it sold its convenience store unit for $2.15 billion and then went on to increase its investment in British online grocer, Ocado. It also bought meal-kit seller Home Chef as competitors including Albertsons and Amazon also expand into that market.
American Outdoor Brands (AOBC) seeing lower demand. The maker of Smith & Wesson firearms is down 5% today and down 50% in the last year. The company beat earnings estimates, but sales fell 25% year over year. The company also lowered guidance for the full year as consumer demand for guns has fallen to "new, lower levels." Gee, you think?