Kroger Second Quarter Revenue Flat
Second quarter sales at the Kroger Co. were flat year-over-year as the company reported gains in operating profit.
Total company sales in the quarter were $33.9 billion, even with company sales in the comparable quarter the previous year. Excluding fuel, sales increased 1.3% compared to the same period last year. Operating profit was $815 million, up from an operating loss of $479 million in the same quarter the previous year. Earnings per share was $0.64, compared with a loss per share of $0.25 in the comparable quarter the prior year.
Company officials said quarterly results reflected Kroger's ability to improve margins while maintaining competitive pricing and helping customers manage their budgets. The increase in rate was primarily attributable to a favorable product mix in our grocery business including Our Brands, lower shrink, and sourcing benefits partially offset by lower pharmacy margins.
"Kroger achieved solid results in the second quarter demonstrating the strength and resiliency of our model,” said Rodney McMullen, chairman and CEO of Kroger. “We are growing households and increasing customer visits by offering a compelling combination of affordable prices and personalized promotions on great quality products, all through a unique seamless experience.”
He said the company’s long-term model is to consistently invest to lower prices so more customers shop at Kroger stores, which in turn fuels its alternative profit businesses and drives greater efficiencies
“This flywheel enables Kroger to deliver exceptional value for customers and investing in our associates, and by doing so, we are well-positioned to generate attractive and sustainable returns for shareholders,” he said.
Second quarter highlights at Kroger included:
- Introduced 223 new Our Brands items, including the expansion of the Smart Way product line
- Increased delivery sales by 17% over last year led by Customer Fulfillment Centers
- Grew eCommerce households by 14% compared to last year
- Celebrated 67 female leaders named as Top Women in Grocery Honorees by Progressive Grocer
