Showing posts with label Kroger. Show all posts
Showing posts with label Kroger. Show all posts

Monday, June 27, 2016

Kroger Profit Boosted By Higher Sales


Kroger Co.'s recent expansion of online ordering services and other services has been rewarded in higher sales leading to a fiscal first-quarter profit rise of 9.8%.

Thursday's report has led to shares rising by almost 3% during morning trading.

Wall Street expectations
for the supermarket chain have been exceeded with earnings reaching $680 million - equating to 70 cents per share. Zacks Investment Research had predicted 69 per cents per share according to a mean estimate based on 13 analysts.

Meanwhile, while Zacks predicted revenue of $34.66 billion (based on 8 analysts), revenue for the period actually rose to $34.6 billion - an increase of 4.7%.

At the same time, there was a same-store sales rise of only 0.4%, or 2.4% excluding fuel centers.

Full-year earnings are predicted by Kroger to be in the region of $2.19 - $2.28 per share.

Expansion over the last year has been helped by the purchase of the Midwest grocer Roundy's for around $178 million. The Cincinnati-based retailer now operates 1.387 fuel centers as well as 2,778 food stores such as Fred Meyer, Ralphs, King Soopers, Ralph and other brands.

There has been a 15% decrease in Kroger shares this year to date despite an increase of more than 1% on the Standard & Poor's 500 index.


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