US: Kroger raises guidance after "outstanding Q3"
Kroger has raised it earnings guidance in the wake of its Q3
US retailer Kroger today (1 December) increased its earnings guidance after what the chairman called an "outstanding" third quarter.
Despite a drop in profit in the three months to 5 November, the company announced it had upgraded its earnings per share guidance to between US$1.95 to $2 for the full year, up from $1.85 to $1.95.
Net earnings attributable to the company dropped 3% to $195m. Operating profit for the period was $404.4m, down from $406.9m for the same period in 2010.
However, identical supermarket sales without fuel increased 5%. Sales were $20.5bn, up from $18.6bn last year.
"Kroger had an outstanding third-quarter. Our associates delivered on our Customer 1st strategy and we had strong sales and earnings per share growth," Kroger chairman and CEO David Dillon said.
"Kroger is winning in the marketplace and delivering value for our customers, associates and shareholders. This is exactly the positive momentum we strive for as we enter the holiday season, our most exciting time of the year. Based on the consistency of our results, we have the confidence to raise our earnings guidance for the year."
The nine-month figures saw net earnings climb 8.6% to $202m. Operating profit was $1.7bn, compared to $1.6bn in the prior-year period. Sales increased from $837m to $909m.
Supervalu Inc chief executive Craig Herkert is expecting "another year of solid progress" at the US retailer as he pushes ahead with plans to revamp the business....
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