Home Kroger Drives Initiatives, Earnings Through Q3
December 2, 2021
Kroger Drives Initiatives, Earnings Through Q3

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The Kroger Co. in its third quarter beat Wall Street sales and earnings estimates while launching initiatives including a partnership with Bed Bath & Beyond.

Company net earnings were $483 million, or 64 cents per diluted share, versus $631 million, or 80 cents per diluted share, in the year-prior period. Adjusted for one time events, company earnings were $589 million, or 78 cents per diluted share, versus $557 million, or 71 cents per diluted share, in the year-earlier quarter.

Kroger beat a Yahoo Finance-published analyst consensus third quarter adjusted earnings per diluted share estimate of 66 cents and a sales estimate of $31.23 billion.

Identical sales at Kroger without fuel increased 3.1% from the 2020 quarter and 14% on a two-year stack basis. Total company sales were $31.86 billion in the third quarter compared to $29.72 billion for the same period in the year before. Excluding fuel, sales increased 2.9% compared to the same period a year prior. Operating profit was $868 million versus $792 million in the year-previous period.

Among the Q3 highlights, according to Kroger, were the introduction of Boost by Kroger Plus, an annual membership program that offers free delivery and additional fuel points on purchases at four of the company’s store banners; the announcement of five new customer fulfillment centers powered by the Ocado Group, including the company’s first in the northeastern United States; and its partnership with Bed Bath & Beyond on a national in-store pilot program and an e-commerce joint initiative set for Kroger.com.

Kroger’s chairman and CEO Rodney McMullen, said, “Kroger’s strategy to lead with fresh and accelerate with digital continues to connect with our customers. Our agility, and the commitment from our amazing associates, is allowing us to navigate current labor and supply chain conditions and provide the freshest food at affordable prices across our store and digital ecosystem. Our focus on execution, combined with our continued discipline in balancing investments in our associates and customers with exceptional cost management, and growth in our alternative profit business allowed us to exceed internal expectations and deliver strong sales and earnings growth.”

 

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