US: Kroger raises guidance after "outstanding Q3"

By Sam Webb | 1 December 2011

Kroger has raised it earnings guidance in the wake of its 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.

Sectors: Financials, Retail

Companies: Kroger

View next/previous articles

Currently reading -

US: Kroger raises guidance after "outstanding Q3"

There are currently no comments on this article

Be the first to comment on this article

Related articles

Focus: FDA restates intentions on nutritional food labelling

The FDA's recently announced 2012-2016 strategic plan includes specific reference to both front-of-pack nutritional labelling and reform of the nutrition facts panel. Details of how the FDA plans to proceed remain sketchy, Ben Cooper writes, but the fact that these two items are firmly on the policy agenda ensures a lively debate will continue and possibly intensify during the coming few years.

In the spotlight: Supervalu's long hard slog

US retailer Supervalu saw its sales and gross profit fall yet again in its last financial year although CEO and president Craig Herkert insists progress is being made. Analysts acknowledge the company is on the right track but argue it could be years before it yields the full benefits of its moves to revitalise the business. Dean Best reports.

On the money: Supervalu CEO Herkert sees more "solid progress"

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.

Welcome to the home of food information, insight & intelligence

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page