Kroger Profit Rises 9.9%
June 16 2016 - 9:20AM
Dow Jones News
Kroger Co. (KR) reported that its earnings rose 9.9% in the
latest quarter and the supermarket chain reiterated that weak fuel
margin trends are posing a drag on its profit outlook for the
year.
Shares rose 3.1% to $36.08 in recent premarket trading as
per-share earnings for the three-month period ended May 21 edged
past analysts' expectations.
Kroger said its expects its 2016 per-share earnings will come in
at between the low end and middle of its previous guidance for
per-share profit of $2.19 to $2.28, based on current fuel margin
trends that are projected at or slightly below the five-year
average.
The low end would be Kroger's second-worst results since
2004.
The company, which is the second-largest retail food seller
after Wal-Mart Stores Inc., affirmed its 2016 outlook for sales
growth, excluding fuel, at established stores of 2.5% to 3.5%.
The Cincinnati-based company has integrating the stores it added
with its Roundy's Inc. acquisition. It also has been investing in
an effort to attract customers for its organic products from rivals
such as Whole Foods Market Inc. Kroger also has lowered prices on
staples like bread and milk as it faces competition from Wal-Mart
and Costco Wholesale Corp.
Excluding fuel sales, identical-supermarket sales rose 2.4% in
the latest quarter, compared with an increase of 5.7% a year
earlier.
In all, Kroger reported a profit of $680 million, or 70 cents
share, up from $619 million, or 62 cents a share, a year
earlier.
Revenue increased 4.7% to $34.6 billion. Excluding fuel sales
and its Roundy's acquisition, total sales improved by 3.5%.
Analysts polled by Thomson Reuters expected per-share profit of
69 cents and revenue of $34.83 billion.
Operating margin rose to 3.5% from 3.3%.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
June 16, 2016 10:05 ET (14:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Whole Foods Market, Inc. (NASDAQ:WFM)
Historical Stock Chart
From Apr 2024 to May 2024
Whole Foods Market, Inc. (NASDAQ:WFM)
Historical Stock Chart
From May 2023 to May 2024