In the second quarter, Kroger saw across-the-board financial advances that exceeded expectations as the company continues to leverage technology, as in its robotic fulfillment centers using Ocado technology, and, as a consequence, omnichannel operations, and made gains.
An analyst consensus estimate published by Yahoo Finance called for adjusted earnings per diluted share of 83 cents and sales of $34.53 billion.
Identical Sales without the effect of fuel price volatility increased 5.8% in the quarter year over year. Total company sales were $34.64 billion compared to $31.68 billion for the year-prior quarter, Kroger reported. Operating profit came in at $954 million versus $839 million in the year-earlier period while adjusted operating profit came in at $1.11 billion versus $947 million.
Among the quarter’s highlights, Kroger indicated a 34% year-over-year increase in delivery sales. In addition, the company announced plans for a new Kroger Delivery Customer Fulfillment Center in the Denver, CO, metropolitan area and the opening of one in Romulus, MI, in the Detroit market
In announcing the second quarter results, Kroger chairman and CEO Rodney McMullen said, “Kroger delivered strong second-quarter results propelled by our Leading with Fresh and Accelerating with Digital strategy. Our consistent performance underscores the resiliency and flexibility of our business model, which enables Kroger to thrive in many different operating environments. We are applying technology and innovation to improve freshness, grow Our Brands, and create a seamless shopping experience so our customers can get what they want, when and how they want it, with zero compromise on quality, selection and affordability.”
