CINCINNATI, OH - Grocery giant Kroger has shown its ongoing commitment to fresh food, especially fresh produce, and it is showing no signs of minimizing its dedication. With the release of its third quarter 2023 results, the retailer is showing how it is Leading with Fresh and Accelerating with Digital to position itself for long-term sustainable growth.
"Kroger's third quarter results highlight the strength and diversity of our business model in a challenged operating environment, as strong fuel performance and growth in our alternative profit businesses supported continued adjusted net earnings per diluted share growth,” said Rodney McMullen, Chairman and Chief Executive Officer. “As consumer spending tightens, we are focused on providing customers with exceptional value. By maintaining our long-term commitment to lower prices, personalized promotions, and rewards, we are growing households and increasing loyalty, positioning Kroger for sustainable future growth. We appreciate our associates and continue to invest in wages, benefits, and training, which is resulting in continued improvements in our customer experience.”
With its focus trained on accelerating its fresh and digital impacts, Kroger noted several key highlights showcasing its success so far. They include:
- Accelerated Fresh Produce Initiative with a total of 2,053 stores now certified, adding more days of freshness for customers
- Committed to increasing local products in stores by 10 percent following proposed merger with Albertsons Companies
- Increased delivery sales by 20 percent over last year, led by Kroger Boost and Customer Fulfillment Centers
- Grew digital sales by 11 percent
“Our model's strength allows us to navigate many economic environments. We remain committed to balancing investments in associates and greater value for our customers while continuing to generate attractive and sustainable returns for our shareholders,” added McMullen.
Based on its results, Kroger also updated some aspects of its guidance:
- Identical sales without fuel of 0.6–1 percent, with underlying growth of 2.1– 2.5 percent after adjusting for the effect of Express Scripts
- Adjusted FIFO Operating Profit of $4.9–$5 billion
- Adjusted net earnings per diluted share of $4.5–$4.6, including an estimated benefit from the 53rd week of approximately $0.15
To read the release in its entirety and see what Chief Financial Officer Gary Millerchip had to say, click here.
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