CINCINNATI — Kroger Co. here on Thursday said identical-store sales in the fiscal fourth quarter increased by 4.9% excluding fuel — figures that exceeded most analyst estimates and defied trends among competitors.
The company posted a loss for the quarter of $306.9 million, related mainly to a previously announced pension consolidation, but said adjusted earnings totaled 50 cents per share — exceeding consensus estimates of 49 cents.
Sales for the quarter, which ended Jan. 28, increased 7.7% to $21.4 billion, Kroger said. For the fiscal year, sales increased 10.2% to $90.4 billion, and ID sales excluding fuel increased by 4.9%.
Excluding the pension consolidation, net earnings of $1.2 billion increased 9.1% and earnings per share of $2 for the year hit the high end of the company’s expected range.
“More loyal and total households are shopping with us and identical sales are up among both groups,” David Dillon, Kroger’s chairman and chief executive officer, said in a conference call discussing results.“This consistent sales performance contributed to Kroger's market share gains, and we achieved the high end of growth estimates for both earnings per share and identical sales growth.”
Citing tepid sales results recently reported by Safeway and Winn-Dixie, as well as some recent comments from product manufacturers indicating volumes were down, some analysts said the current quarter could be a more difficult one for Kroger.
