Strong Private Label Sales Boost Kroger Q3 Results

Third quarter sales at Kroger were up more than 6% excluding fuel as the grocer continued to expand its assortment of private brand products while also executing on its Leading with Fresh and Accelerating with Digital Strategy.

Sales in the quarter were $34.2 billion, up from sales of $31.9 billion in the comparable quarter in the previous year. Operating profit was $841 million and adjusted FIFO operating profit was $1,094 million. Identical sales were up 6.9%, Our Brands identical sales were up 10.4%, and digital sales grew 10%.

"Kroger achieved strong results in the third quarter as we continue to execute our Leading with Fresh and Accelerating with Digital strategy,” said Rodney McMullen, chairman and CEO of Kroger. “Kroger's value proposition, which includes providing great quality, fresh products at affordable prices, data-driven promotions, trusted Our Brands products and an industry-leading fuel rewards program, is resonating with shoppers and driving increased customer loyalty.   

During the quarter, Kroger launched its Our Brands Innovation Summit, a program designed to uncover new private brand items that highlight market trends. Also, the grocer introduced 147 new Our Brands items, including products to enhance the holiday season and expanded Alternative Farming offerings to 792 total stores connecting more communities to locally sourced fresh and sustainable products.

Kroger also raised its full-year guidance and is now forecasting identical sales without fuel to grow in the range of 5.1% to 5.3% with net adjusted net earnings per diluted share to be in the range of $4.05 to $4.15. 

“The resiliency of Kroger's value creation model positions us well to navigate different operating environments, and as we look forward, we remain confident in our ability to deliver attractive and sustainable total shareholder returns for investors,” said Gary Millerchip, the company’s chief financial officer.