Kroger on Thursday reported net earnings of $680 million, or $0.70 per diluted share, and identical supermarket sales growth, without fuel, of 2.4% in the first quarter of 2016.
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Kroger said Thursday it earned a $680 million profit in its first quarter of 2016, an increase of almost 10 percent from a year ago.
Total sales rose 4.7 percent to $34.60 billion.
“Fifty consecutive quarters of positive identical supermarket sales growth, excluding fuel, is extraordinary”, shared Chairman and CEO Rodney McMullen. Identical-supermarket sales growth, without fuel, grew 2.4 percent in Q1.
Overall, Kroger’s first-quarter report was very good today, and if you are looking for stock that offers excellent earnings and sales growth, as well as solid dividend payments, you may want to consider adding KR to your portfolio.
It recently merged with Harris Teeter and used that grocer’s know-how to build ClickList, a program that allows shoppers to order online and pick up their purchases at Kroger stores.
In additional to continued investment in people, with more than 12,000 new associates joining the fold after a company-wide store hiring event in May, Kroger continues to expand its digital presence, “marching steadily toward a time when we can provide our customers with anything, anytime, anywhere”, McMullen said. That’s down from prior years, causing some investors to shy away from Kroger stock.
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Looking ahead, the company expects earnings for fiscal 2016 will be at the low-end to mid-point of its previously forecast range, based on current fuel margin trends. The company said that it had $0.70 in earnings per share (EPS) on $34.6 billion in revenue. “Where we end up in the full range will be driven primarily by fuel margins”. The company now has 2,778 food stores under a range of brands, including Kroger, Ralphs, Fred Meyer, and King Soopers.
