Shares of Kroger (NYSE:) rose 2.92% pre-market Thursday after the grocery chain reported first-quarter earnings and revenue that topped analyst expectations.

The company’s adjusted earnings per share (EPS) came in at $1.43, beating the consensus estimate of $1.34. Revenue for the quarter was also solid, coming in at $45.27 billion against the expected $44.93 billion.

Kroger’s first-quarter results were characterized by a modest 0.5% raise in identical sales excluding fuel and a 0.6% raise in total company sales compared to the same quarter last year, excluding fuel.

The company’s operating profit was $1,294 million and adjusted FIFO operating profit was $1,499 million. Digital product sales increased by more than 8% and delivery and collection services experienced double-digit growth, reflecting the successful execution of the company’s go-to-market strategy.

Despite a challenging economic environment, Kroger’s focus on providing value and personalized promotions resonated with customers, resulting in growth in total households, true households and customer visits.

The company’s president commented on the good results, attributing them to long-term investments made in the diversification of Kroger’s business model, which allowed for effective management of economic cycles.

Looking ahead, Kroger reaffirmed its full-year 2024 guidance, forecasting identical sales excluding fuel of 0.25% to 1.75%. The company also expects adjusted FIFO operating earnings of $4.6 billion to $4.8 billion and adjusted EPS of $4.30 to $4.50, in line with analyst consensus estimates of $4.43.

Kroger’s robust balance sheet and total net debt to adjusted EBITDA ratio of 1.25, compared to 1.34 a year ago, position the company for continued growth and increased shareholder value.