U.S. grocery store chain Kroger said Thursday that smaller profit margins offset the effect of cost-control initiatives and higher digital sales reduced third-quarter earnings.

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The Cincinnati-based company also cut its 2018 guidance, and shares fell by more than 1 percent in premarket action as the broader market also fell.

The company, which operates 2,765 retail food stores, said it earned $317 million, or 39 cents per share (EPS), on revenue of $27.67 billion, compared to the year-earlier quarter when it earned $397 million, or 44 cents per share, on revenue of $27.75 billion.

Analysts had expected EPS of 43 cents and revenue of $27.65 billion.

Same-store sales, excluding fuel, rose 1.6 percent, less than the 1.65 percent Wall Street expected.

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