US: Kroger Q4 profits beat Wall St forecasts
Kroger posted higher LFL sales
US food retailer Kroger today (6 March) reported fourth-quarter earnings that beat analyst expectations.
Excluding the impact of Kroger's recent acquisition of regional US retailer Harris Teeter, as well as LIFO effects, adjusted net earnings per diluted share were $0.78 in the fourth quarter to 1 February.
The consensus forecast among analysts was for earnings per share to be $0.72.
On that basis, Kroger's net income was up from $370m a year earlier to $406m.
Including those items, Kroger's net income was down 8.7% at $718m. Operating income fell 12.3% to $718m.
Kroger, which has been reported to be mulling a bid for US rival Safeway Inc, reported a 3.7% fall in sales to $23.22bn for the quarter, which lapped a fourth quarter in 2012/13 with an extra week.
After adjusting for the extra week, total sales increased by 4.8%. Excluding fuel, total sales increased by 4.4%. Identical supermarket sales, without fuel, were up 4.3%
Over the year as a whole, Kroger's net income reached $1.52bn, up from $1.5bn. Adjusted earnings per diluted share were $2.85.
Operating profit dipped from $2.76bn to $2.73bn.
Sales were up 1.8% at $98.38bn. Identical-supermarket sales were up 3.6%, excluding fuel.
Kroger expects adjusted earnings per diluted share to grow 10-14% in part thanks to "accretion" from the Harris Teeter deal.
It forecast a 2.5-3.5% increase in identical supermarket sales, excluding fuel, but including the contribution from the Harris Teeter business. "This range takes into account the expectation of low inflation during the year," Kroger said.
Shares in Kroger were up 0.3% at $43.81 at 12:54 ET.
Canadean's "The Kroger Co. : Retailing - Company Profile, SWOT & Financial Report" contains in depth information and data about the company and its operations. The profile contains a company overview,...
Kroger continues to fight for share in the extremely competitive grocery channel, holding a 7% value share for the category. Kroger continues to focus on its core supermarket business through acquisit...
Introduction Food Retail in the United States industry profile provides top-line qualitative and quantitative summary information including: market size (value 2009-13, and forecast to 2018......
Introduction Food Retail in North America industry profile provides top-line qualitative and quantitative summary information including: market size (value 2009-13, and forecast to 2018). T......
- Pricing, productivity pay off for Mondelez
- BRICs and beyond: Kam Tai's Chinese growth story
- Analysis: Unilever's global ice cream push
- Briefing: How is gluten-free faring in Europe?
- Gluten-free early-mover Mrs Crimble's plots future
- Nakd sale "attracts Burton's, Hain, Kellogg"
- Venezuela seizes Nestle, PepsiCo distribution hub
- Kerry launches premium cooked meat brand in UK
- Mondelez "cautiously optimistic" on China
- Bel international reach offsets Europe challenge