CINCINNATI, OH – Releasing its Q2 financial for 2016, Kroger has announced a rise to its sales over the past quarter with corresponding strategies already marked for the next.
"I'm very proud of our associates for their determined focus on always making a difference for our customers. Their execution of our Customer 1st Strategy in a deflationary environment helped deliver growth in identical store sales, units, and market share,” stated Chairman and CEO Rodney McMullen in a press release.
The company’s sales, excluding fuel, increased 1.7% over the quarter from this same time last year, to rest at $0.47 per share. This brings the company’s adjusted EPS up to $454 million from 2015’s $433 million. Reuters reported that this number is slightly lower than the average analyst estimate which marked the company for a 2.6% rise.
Thus far, Kroger has reported an increase of year-to-date net earnings, excluding adjustment items, when compared to this time last year. These net earnings have risen to $1.15 billion from 2015’s $1.052 billion.
Other notable Kroger reportings to 2016’s second quarter, when compared to last year’s data, are as follows:
- Net earnings of $383 million, or $0.40, down from $433 million
- Total sales increased 4.0% to $26.6 billion from $25.5 billion
- Total operating expenses (excluding Roundy’s, fuel, and pension agreements) decreased 6 basis points
In tandem with this increases to its sales, Kroger reported on its financial strategies for the next quarter and beyond. Kroger has lowered its projected guidance for both its sales and profits guidance for the year.
“We are focused on long-term performance over a three-to-five year horizon. We have the right strategy, the right people, and the financial flexibility to execute our strategy, which allows us to continue investing in our associates and our business and growing market share. By staying on our strategy, we create long-term value for our shareholders," continued McMullen.
Kroger’s shift to its financial outlook includes a drop to its full-year profit from $2.03 to $2.13 per share from its previous guidance outlines of $2.19 to $2.28. Kroger also lowered its net earnings guidance range per diluted share to $2.10 to $2.20.
The company stated that it expects its supermarket sales growth to be in the 1.4-1.8% for the next year, which is down from its previous statement of 2.5-3.5%.
Kroger stated that these changes were to promote long-term financial strategies to better utilize financial flexibility to drive growth for its shareholders. Reuters reported that Kroger is not the first company to report numbers lower than expected in the industry in the midst of deflation.
With a new financial outlook for the horizon, and further plans to boost its portfolio through the Roundy’s banner and online ordering services, stay with AndNowUKnow as we report on where Kroger is headed next.
