Kroger raises full-year guidance

Kroger reported total sales of $25.3 billion, representing an increase of 11.6% for its second quarter. Total sales, excluding fuel, increased 12.4% in the second quarter over the same period last year.

"We are winning with customers because we offer a full range of advantages including a great overall shopping experience, excellent customer service, a complete assortment of both national and corporate brand products and everyday low prices and promotional offerings," stated Rodney McMullen, Kroger CEO. "As we improve our connection with customers, we are also executing our growth plan and delivering on our key performance indicators - all of which is fueling strong financial results for shareholders."

Net earnings totaled $347 million, or $0.70 per diluted share, and identical supermarket sales growth, without fuel, was 4.8% in the second quarter of fiscal year 2014, marking the 43rd consecutive quarter of positive identical supermarket sales growth.

Net earnings in the same period last year were $317 million, or $0.60 per diluted share.

Based on the second-quarter results, the company raised and narrowed its adjusted net earnings per diluted share guidance to a range of $3.22 to $3.28 for fiscal 2014. The previous guidance was $3.19 to $3.27 per diluted share. Kroger raised its identical supermarket sales growth guidance, excluding fuel, to 3.5% to 4.3% for fiscal 2014. The previous guidance was 3% to 4%.

This is the second consecutive quarter that includes Harris Teeter in Kroger's statement of operations. Year-over-year percentage comparisons are affected as a result.

Source: retailing today