US retail giant Kroger today (17 June) booked falling quarterly profits but revealed its same-store sales had accelerated during the period.
Kroger said net earnings for the three months to 22 May stood at US$373.7m – against $435.1m a year earlier – amid higher healthcare and pension costs and credit-card fees.
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However, despite the 14% fall in profits, Kroger’s shares rose in early trading as the retailer beat analysts’ forecasts. Kroger’s stock was up 4.9% at $21.06 at 10:45 ET.
Kroger’s same-stores, excluding fuel, rose 2.4% during the quarter – against growth of 1.2% in the fourth quarter of its last fiscal year.
“I am pleased with the strong positive identical sales growth we achieved in the first quarter while striking a better balance on margin investments,” said chairman and CEO David Dillon.
Kroger’s total sales, including fuel, rose 8.7% to $24.8bn.
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