Kroger shareholders should stay optimistic for long-term gains, despite the company's nearly 19 percent plunge in shares by market close, said Rupesh Parikh, senior analyst at Oppenheimer Holdings.
"The environment is challenging, but the management team here is making the necessary price investments to improve their competitive positioning," Parikh said in an interview Thursday on CNBC's "Power Lunch." "Near term the headwinds persist, but we think longer term, these price investments will lead to market share gains. "
Although the company reported earnings that met estimates in the first quarter, same-store sales fell for two consecutive quarters for the first time in seven years. Kroger reported it will cut its full-year EPS to a range of $2 to $2.05 per share, compared to its previous estimate of $2.21 to $2.25. Analysts were expecting $2.49 per share, according to a consensus estimate from Thomson Reuters.