December 4, 2014
Momentum continues to build at Kroger where the company elevated expectations for its fourth quarter performance after a better than expected showing in the third quarter.
The company reported a 5.6 percent increase in identical store sales, extending to 44 the number of quarters in which it has posted a positive number. It also said fourth quarter identical stores sales would increase from 4 percent to 5 percent and shared favorable 2015 preliminary guidance that implies the trend of improved productivity at existing stores isn’t about to end. Based on the better than expected third quarter performance, Kroger raised and narrowed its current full year adjusted earnings per share guidance to a range of $3.32 to $3.36 from $3.22 to $3.28.
“Kroger continues to deliver consistently remarkable results. We expect to exceed our long-term earnings per share growth rate for fiscal 2014,” said Kroger CEO Rodney McMullen. “Our associates shine brightest during the holiday season and we intend to continue our positive momentum through the fourth quarter.”
In the third quarter period ended November 8, total sales increased 11.2 percent to $25 billion compared to $22.5 billion for the same period last year. Total sales, excluding fuel, increased 13.7%.
Profits during the period totaled $362 million, or 73 cents a share, compared to $229 million, or 57 cents a share, the prior year.
Source: Retailing Today
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