They beat by one penny. Estimates were at 42 cents and they came in at 43 cents despite not making top line estimates. Gross profit margin increase 10 basis point from 22.4% to 22.5%. Guidance affirmed, SG&A costs down nearly 10% from $2.5 billion to $2.3 billion, but up slightly as a % of sales from 19.6% to 19.9% due to reduced sales leverage.pretty solid report!
I think the key thing is that they did not cut guidance(as Safeway did last week), despite a lower comp forecast.
Also, free cash flow(and debt paydown) was great again. I calculate almost $250 million in debt paydown from the end of February. (Long term debt dropped $300 million, but short term debt was up $60 million).