Kroger has announced the departure of Chairman and Chief Executive Rodney McMullen following an investigation that revealed personal conduct inconsistent with the supermarket chain's ethics policy. This significant leadership change has raised questions about the future direction of the company. The Kroger board became aware of certain personal conduct by McMullen on February 21 and swiftly engaged external counsel for a thorough investigation.
Despite the circumstances surrounding this departure, the company emphasizes that McMullen's actions did not correlate with Kroger's financial performance, operations, or reporting, nor did they involve any associates at Kroger. This clarification is crucial, as it aims to maintain investor confidence and assure stakeholders that the company's underlying business remains robust. In light of McMullen's exit, Ronald Sargent, who has served as Kroger's lead director since 2017, has stepped up as the new board chairman and interim CEO.
His extensive experience, including his previous tenure as Chair and CEO of Staples from 2002 to 2016, positions him as a steady hand during this transitional period while Kroger searches for a permanent CEO. To further bolster governance, the board has appointed Mark Sutton as the lead independent director, a critical role that will support Sargent in ensuring effective oversight. Looking ahead, Kroger is set to release its fourth-quarter and fiscal 2024 financial results, with anticipation that adjusted per-share earnings will come in slightly above the upper range of its prior guidance.
The company projected adjusted EPS for fiscal 2024 between $4.35 and $4.45, with the current consensus on FactSet suggesting an adjusted EPS of $4.46. This optimistic outlook could be indicative of the company's resilience and operational capabilities amid leadership changes. Additionally, Kroger forecasted that its full-year identical sales without fuel are likely to align with the high end of its guidance range, having previously expected growth in this metric of between 1.2% to 1.5% for the ongoing fiscal year..