CINCINNATI, OH - Kroger Co. announced the results for its last quarter of 2015, reflecting fourth quarter net earnings of $0.57 per diluted share, as well as identical supermarket sales growth of 3.9%, excluding fuel.
But while EPS did beat expectations by $0.03, the retailer’s $26.17 billion revenue was short of expectations, coming out to a 3.8% increase year-over-year but resulting in a sudden drop in the company’s shares this morning by as much as 9%.
Despite missing on those projections, however, Chairman and CEO Rodney McMullen viewed the year as a positive one for Kroger, fourth quarter included, in the financial report.
"2015 was an outstanding year for Kroger. We delivered on our performance targets, grew market share, created 9,000 new jobs, supported our communities, and continued to expand our use of technology to drive growth. And we're not done,” McMullen said, according to a press release. “In 2016, we will continue making a difference for our customers and associates, growing our business, and delivering value for shareholders."
Details for the fourth quarter of 2015 included:
- Total sales, excluding fuel, increased 6.5% in the fourth quarter over the same period last year.
- Excluding Roundy's, total sales without fuel increased 4.4% in the fourth quarter.
- Total sales including fuel and Roundy's increased 3.8% to $26.2 billion in the fourth quarter compared to $25.2 billion for the same period last year.
- Net earnings for the fourth quarter totaled $559 million, or $0.57 per diluted share.
Kroger’s capital investments, excluding mergers, acquisitions, and purchases of leased facilities, totaled $3.3 billion for the year, compared to $2.8 billion in 2014, while it was able to return more than $1.1 billion to shareholders through share buybacks and dividends in 2015, according to the release.
Looking forward, the retailer stated that its long-term strategy includes driving growth and returning capital to its shareholder through its “financial flexibility.” Current anticipations are that identical supermarket sales growth, excluding fuel, will be approximately 2.5% to 3.5% for 2016, while full-year net earnings for 2016 are expected to range from $2.19 to $2.28 per diluted share.
The retailer noted that actual fuel margins will be the primary determination of where it falls, and is currently expecting those to be at or slightly below the five-year average, with continued volatility.
As for capital investments, excluding mergers, acquisitions and purchases of leased facilities, Kroger currently projects to be in the $4.1 to $4.4 billion range for 2016.
AndNowUKnow will continue to follow Kroger and other retail news pertinent to the produce industry.
