In the first quarter, The Kroger Co. posted mixed results even as it boosted its full-year identical sales guidance and reaffirmed the rest of its outlook.
The average number of common shares used in the diluted per share calculation was 664 million versus 727 million in the year-past quarter.
A Yahoo Finance-published analyst consensus estimate called for first quarter adjusted diluted earnings per share of $1.46 on revenue of $45.31 billion.
The company reported an identical sales advance of 3.2% in the quarter. Total sales were $45.12 billion versus $45.27 billion for the year-prior period, which included $917 million from the sale of Kroger Specialty Pharmacy, a business the company divested at the end of last year. Operating profit was $1.32 billion versus $1.29 billion in the year-previous quarter, while adjusted operating profit was $1.52 billion versus $1.5 billion.
Kroger reaffirmed its guidance for the full fiscal year, except in one case, as it upgraded its identical sales without fuel outlook.
“Our strong sales results and positive momentum give us confidence to raise our identical sales without fuel guidance to a new range of 2.25% to 3.25%,” David Kennerley, Kroger’s CFO, stated. “While first quarter sales and profitability exceeded our expectations, the macroeconomic environment remains uncertain, and as a result, other elements of our guidance remain unchanged.”
In announcing the financial results, chairman and CEO Ron Sargent, who replaced former chair and chief executive Rodney McMullen in those roles after an internal investigation determined he had violated certain company personal conduct rules, said, “Kroger delivered solid first quarter results, with strong sales led by pharmacy, e-commerce and fresh. We made good progress in streamlining our priorities, enhancing customer focus, and running great stores to improve the shopping experience. Our commitment to driving growth in our core business and moving with speed positions us well for the future. We are confident in our ability to build on our momentum, deliver value for customers, invest in associates and generate attractive returns for shareholders.”
The McMullen departure came around the time of Kroger’s fourth quarter results announcement and before an executive realignment that included the company’s elevating Joe Kelley, president of its King Soopers and City Markets operation, to senior vice president of Kroger retail divisions. Kroger continues to wrangle with Albertsons Cos. in the wake of their failed merger attempt.
