Economy

Kroger 3Q profit in line; maintains outlook

CINCINNATI (AP) — Kroger's net income fell nearly 6 percent during the third quarter, partly on the costs from the pending acquisition of Harris Teeter.

Kroger and other supermarkets are trying to adapt to a shifting industry as shoppers increasingly buy groceries at big-box retailers, drugstores and dollar stores with growing food sections. The company is bolstering its appeal across a broader spectrum, through its acquisition of upscale food retailer Harris Teeter, and an expanded loyalty program for customers sticking to a tighter budget.

The nation's largest traditional supermarket said Thursday that its net income fell to $299 million, or 57 cents per share. That compares with net income of $317 million, or 60 cents per share a year ago. Excluding costs related to the acquisition and a tax benefit, net income totaled 53 cents per share, matching expectations. A year ago, the company benefited from a settlement with credit card companies. Excluding that and other items, year-ago revenue totaled 46 cents per share.

Revenue rose 3 percent to $22.51 billion from $21.81 billion. Analysts expected $22.72 billion. Kroger Co., which owns also Ralphs, Fry's and other chains, said sales rose 3.5 percent at stores open at least a year. That's a key measure of a retailer's financial health because it excludes the volatility from stores that open or close during the period.

The company stuck to its per-share earnings expectations of $2.73 to $2.80 for the year. Analysts expect $2.80 per share. Shares edged down 55 cents to $40.96 in morning trading, with stocks on major U.S. markets moving mostly lower. The stock is up 63 percent since the beginning of the year.

Related Headlines

  • Whole Foods' shares fall on outlook, 1Q results

    Shares of Whole Foods Market Inc. dropped in after-hours trading Wednesday after the grocery chain reported that its fiscal first-quarter profit and revenue fell below ... 

  • Kroger: Storm response helped boost sales

    Kroger said its ability to keep its supermarkets open and well-stocked as customers rushed to hoard groceries ahead of winter storms helped boost its results in the fourth ... 

  • Safeway, RedBull, display, logo, trademark

    Albertsons parent Cerberus to buy Safeway

    Safeway has agreed to be acquired by an investment group led by Cerberus Capital Management, the owner several supermarket chains. The acquisition is worth about $7.64 billion ... 

  • Safeway, RedBull, display, logo, trademark

    Safeway in talks over possible sale of company

    Safeway says it's in talks to possibly put itself up for sale. The Pleasanton, Calif.-based supermarket operator said Wednesday that discussions are ongoing but that it hasn't ... 

Find the best rates

Find your future job here