Kroger (CR) shares fell more than 3% intraday Thursday after the largest U.S. supermarket chain by revenue missed sales estimates and provided a subdued outlook.

Kroger reported fiscal 2023 revenue rose 1.3% to $45.2 billion, slightly below estimates. Earnings per share (EPS) of $1.51 beat forecasts. The company said increased promotion and theft had cut into profits.

CEO Rodney McMullen explained that shoppers are increasingly watching what they spend on due to inflation and economic uncertainty.

Kroger expects full-year EPS of $4.45 to $4.60, the same estimate as in March. The midpoint of $4.52 per share was lower than analysts had expected.

CFO Gary Millerchip said that in 2023 comparable store sales it is still expected to grow by 1% to 2%, although it will bottom out over the next three quarters. He added that the current quarter’s EPS will also be at the lower end of the company’s forecast range.

Despite Thursday’s drop in Kroger’s stock price, the stock was still in positive territory for the full year.