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👉 Week in Review — Too Long; Didn’t Read:
Key Earnings Announcements:
Kroger’s digital business channel finally achieved profitability.
Progressive distributed an annual-variable dividend of $13.50.
CarMax introduced a four-pillar strategic framework to turn around their stock price.
Investor Events / Global Affairs:
U.S.-Iran peace talks continue to be a complicated subject.
Intel surged to a record high after President Trump stated that Apple agreed to work with the chipmaker.
Kevin Warsh could bring significant change to the Fed.
Economic Updates:
U.S. retail sales rose for a fourth straight month.
The Leading Economic Index signals that the U.S. economy continues to avoid a recession despite mounting economic headwinds.
Let’s dive right in!
👉 Best and Worst ETF Performers of the Week
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👉 Key Earnings Announcements:
Kroger’s digital business channel finally achieved profitability, Progressive distributed an annual-variable dividend of $13.50, and CarMax introduced a four-pillar strategic framework to turn around their stock price.
Kroger (KR)
Key Metrics
Revenue: $46.1 billion, an increase of +2% YoY
Operating Income: $1.4 billion, an increase of +6% YoY
Profits: $903.0 million, an increase of +4% YoY
Earnings Release Callout
“We have the right stores in the right places, unmatched customer insights, and the ability to win. Our focus is clear: to become America's best grocer. We will measure ourselves against that every day. We are pleased with our first quarter results, but we know there is more work to do. That is why we are building a culture that is never satisfied, with a constant focus on serving our customers better.”
My Takeaway
Kroger finally achieved profitability in their digital business — allowing them to exceed Wall Street’s expectations.
The digital channel served as a primary growth driver, with adjusted e-commerce sales rising +19%, led by delivery and rapid convenience orders. Management noted that the e-commerce division turned profitable ahead of schedule due to improved fulfillment efficiencies and growth in retail media.
The private-label portfolio also performed well, outpacing national brands by +175 basis points. The pharmacy segment contributed to profit growth, benefiting from an increased mix of generic medications and demand for GLP-1 prescriptions.
Kroger reported a contraction in its GAAP gross margin rate, which fell to 22.7% from 23.0% in the prior-year period. Management attributed this decline to a higher mix of fuel sales, increased transportation logistics costs linked to higher oil prices, and planned price investments designed to maintain customer traffic.
Looking ahead, Kroger reaffirmed their full-year guidance — expecting identical sales without fuel to grow between +1-2%, with operating income to land around $5.1 billion.
Long Kroger.
Progressive (PRG)
Key Metrics
Revenue: $22.2 billion, an increase of +9% YoY
Operating Income: $3.9 billion, an increase of +10% YoY
Profits: $2.8 billion, an increase of +10% YoY
Earnings Release Callout
"The Progressive Corporation delivered strong first-quarter 2026 results, combining profitable underwriting with investment income growth.
The insurance operations were highly profitable, with a companywide underwriting margin of 13.6%, far above the 4% calendar-year goal."
My Takeaway
Progressive’s earnings growth was catalyzed by sustained premium growth, high underwriting profitability, and strong investment income — allowing them to surpass Wall Street’s expectations.
Net premiums written served as a key growth indicator, rising +6% YoY to $23.6 billion. Personal lines drove this expansion, growing +7% to $19.6 billion, supported by a +10% increase in direct-channel auto premiums. The company reported a consolidated combined ratio of 86.4, indicating profitable underwriting. This metric was supported by a 14% underwriting margin in Personal Lines and an 11% margin in Commercial Lines, both of which cleared management's internal 4% profitability target. Total policies in force across the enterprise grew +9% to 39.6 million.
The company's performance benefited from a favorable fixed-income environment, which increased net investment income. Progressive utilized its operational cash flow to return capital to shareholders. During the quarter, the company distributed an annual-variable dividend of $13.50 per share, maintained its standard $0.10 quarterly dividend, and executed $478.0 million in share repurchases.
Additionally, Progressive optimized its capital structure by issuing $1.5 billion in senior notes, ending the quarter with a debt-to-total-capital ratio of 20.7%. Management emphasized the success of their usage-based telematics program in pricing risk accurately amid an inflationary environment.
No position.
CarMax (KMX)
Key Metrics
Revenue: $8.0 billion, an increase of +6% YoY
Operating Income: $258.6 million, compared to $283.2 million last year
Profits: $185.6 million, compared to $210.4 million last year
Earnings Release Callout
“We are introducing a four-pillar strategic framework focused on improving CarMax's offering, simplifying the customer experience, adding value on each transaction, and running lean. Our goal is to drive unit growth and earnings growth while supporting shareholder returns over time, and we plan to share more details at a strategic update in late fall."
My Takeaway
CarMax reported an increase in revenue amid a decrease in profitability.
The retail operating experienced flat unit volume, selling 230,293 used vehicles. However, retail revenue increased +4.7% to $6.39 billion due to a higher average selling price. The wholesale division served as a primary growth driver, with wholesale vehicle sales increasing +14% to $1.43 billion and unit volume rising +8.4%. The CarMax Auto Finance segment reported a -1% decrease in income to $140.2 million, though it successfully increased its financing penetration rate by 150 basis points to 43.3% of all units sold.
The company's profitability was impacted by a deliberate reduction in pricing margins. Retail used vehicle gross profit fell -9.5% to $501.4 million, and the gross profit per used unit declined by $230 to $2,177. To offset this margin compression, CarMax reduced its selling, general, and administrative expenses by -3.7% to $635.2 million, improving its SG&A per total unit metric by +6.8%.
Management focused on the introduction of a new four-pillar strategic framework. Management stated that their primary objectives are improving pricing competitiveness, simplifying the omni-channel customer experience, increasing the attachment rates of financing and extended protection plans, and maintaining lean operational costs. They emphasized that the reduction in retail gross profit per unit is a planned strategy to increase vehicle affordability and stimulate consumer demand amid higher interest rates.
Looking ahead, CarMax reaffirmed their full year guidance, expecting $200M in annualized SG&A exit rate savings by the end of their fiscal year. Management also guided for a $200 decline in retail gross profit per used unit for the full year.
No position.
👉 Investor Events / Global Affairs:
U.S.-Iran peace talks continue to be a complicated subject, Intel surged to a record high after President Trump stated that Apple agreed to work with the chipmaker, and Kevin Warsh could bring significant change to the Fed.
U.S.-Iran Peace Talks Begin, but Major Obstacles Remain
Source: Yahoo News
The first round of U.S.-Iran negotiations aimed at transforming the current ceasefire into a lasting peace agreement underscored how much work remains ahead. Iranian negotiators reportedly pushed for an end to the conflict between Israel and Hezbollah as a condition for broader progress, while major issues such as sanctions relief, frozen Iranian assets, the future of the Strait of Hormuz, and Iran’s nuclear program remain unresolved.
The talks are taking place against a backdrop of continued geopolitical tensions and uncertainty across the Middle East. While both sides have expressed interest in extending the ceasefire, public comments from officials suggest meaningful differences still exist on several key negotiating points. Discussions reportedly focused more on regional security and economic issues than on Iran’s nuclear program, which remains one of the most difficult topics left on the table.
Investors are watching closely because the outcome could have significant implications for global energy markets. Conflicting reports about conditions in the Strait of Hormuz have kept oil markets on edge, with concerns that any disruption to shipping traffic could impact energy prices worldwide. For now, the fact that talks are continuing is encouraging, but a final agreement remains far from guaranteed.
“Iran must immediately stop their highly paid PROXIES in Lebanon from causing trouble. If they don’t, we’ll hit Iran very hard again, just like we did last week, only harder!!!”
Intel (INTC) Soars to Record High After Trump Highlights Potential Apple (AAPL) Partnership
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