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The Kroger Co. is one of the largest retail food companies in the United States as measured by total annual sales (Photo: Kroger/FIS)
COMPANY OF THE WEEK: Kroger Reports Third Quarter 2010
(UNITED STATES, 12/17/2010)
The Kroger Co.(Public, NYSE: KR) has reported total sales, which include fuel, increased 5.9 percent to USD 18.7 billion in the third quarter of fiscal 2010 compared with USD 17.7 billion for the same period last year. Excluding fuel sales, total sales increased 3.1 percent in the third quarter, which ended November 6, 2010, over the same period last year. Identical supermarket sales, without fuel, increased 2.4 percent in the third quarter over the same period last year.
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| The Kroger Co. owns over 2,450 supermarkets in the United States |
Net earnings for the third quarter of fiscal 2010 totalled USD 202.2 million, or USD 0.32 per diluted share. In the third quarter of fiscal 2009, Kroger reported a net loss of USD 874.9 million, or USD 1.35 per diluted share. The fiscal 2009 results included non-cash asset impairment charges totalling USD 1.05 billion, after tax, that primarily resulted from a goodwill write-down. Excluding these impairment charges, net earnings for the quarter would have been USD 176.7 million, or USD 0.27 per diluted share.
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| Kroger's store formats include grocery and multi-department stores, convenience stores and mall jewelry stores operating under nearly two dozen banners |
“Kroger’s customers today are looking for lower prices and a great shopping experience, and our customer first strategy delivers all that and more,” said David B. Dillon, Kroger’s chairman and chief executive officer. “Our team increased identical supermarket sales, earnings and earnings per share in the third quarter while controlling expenses to keep prices low for our customers. These results show Kroger’s strategy is working and that our core grocery business is strong and resilient.”
Fiscal 2010 Year-to-Date Results
For the first three quarters of fiscal 2010, total sales were USD 62.3 billion compared with USD 58.2 billion for the same period last year. Excluding fuel sales, total sales increased 3.2 percent over the prior year. For the same period, identical supermarket sales, excluding fuel, increased 2.5 percent.
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| Kroger also operates Ralphs supermarket chain |
Net earnings for the first three quarters of fiscal 2010 were USD 837.5 million or USD 1.30 per diluted share. Kroger reported a net loss of USD 185.4 million for the first three quarters of fiscal 2009, or USD 0.29 per diluted share. Excluding the impairment charges, net earnings would have been USD 866.2 million or USD 1.33 per diluted share for the first three quarters of last year.
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| The Kroger Co. NYSE: KR (Graph: Reuters) |
Kroger’s operating margin for the first three quarters of fiscal 2010 decreased 38 basis points as a percentage of sales from the same period last year, excluding retail fuel operations and adjusting for the impairment charges in fiscal 2009. Including retail fuel operations and the impairment charges in fiscal 2009, Kroger’s operating margin increased 160 basis points as a percentage of sales compared to the same period last year. The impairment charges in fiscal 2009 accounted for 195 basis points of the increase.
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| CEO David Dillon |
Kroger now expects to invest approximately USD 1.8 to USD 2.0 billion in capital projects during the fiscal year. This compares to earlier guidance of USD 1.9 to USD 2.1 billion.
“Our enthusiastic Kroger team shines during the holiday season, and we expect a solid end to our fiscal year,” Mr. Dillon said. “We remain focused on delivering sustainable earnings growth today for our shareholders while investing for the future. In addition, Kroger’s stock buyback program, debt reduction, and recent dividend increase in September demonstrate our ongoing commitment to creating value.”
About Kroger Co.
The Kroger Co. , headquartered in Cincinnati, Ohio, is the nation’s largest traditional grocery retailer, employing more than 334,000 associates who serve customers in 2,461 supermarkets and multi-department stores in 31 states under two dozen local banner names including Kroger, City Market, Dillons, Jay C, Food 4 Less, Fred Meyer, Fry’s, King Soopers, QFC, Ralphs and Smith’s.
The Company also operates 784 convenience stores, 375 fine jewellery stores, 954 supermarket fuel centres and 40 food processing plants in the United States.
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Information of the company:
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Address:
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1014 Vine Street
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City:
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Cincinnati
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State/ZIP:
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Ohio (OH 45202-1100)
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Country:
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United States
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Phone:
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+1 513 762 4000
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Fax:
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+1 513 762 1575
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E-Mail:
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[email protected]
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More about: 
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