Kroger beats estimates with $25 billion in Q3 sales

CINCINNATI - Kroger on Thursday reported identical supermarket sales growth, without fuel, of 5.6% in the third quarter of fiscal year 2014, marking the 44th consecutive quarter of positive identical supermarket sales growth, excluding fuel. 

 

"Our associates continue to execute our Customer 1st strategy, which is building loyalty beyond the weekly ad and showing yet again that focusing on our customers creates value for our shareholders," said Rodney McMullen, Kroger CEO. "Our financial results were driven by strong sales and core business performance, and helped by higher fuel margins in the third quarter."

 

For the third quarter, which ended Nov. 8, total sales increased 11.2% to $25 billion, beating analyst estimates that Kroger sales would grow by 10.4%. Total sales, excluding fuel, increased 13.7% in the third quarter over the same period last year.

 

Net earnings for the third quarter totaled $362 million, or $0.73 per diluted share. Analysts had projected $0.61 per share. 

 

Based on Kroger's strong third-quarter results, the company raised and narrowed its adjusted net earnings per diluted share guidance to a range of $3.32 to $3.36 for fiscal 2014. The previous guidance was $3.22 to $3.28 per diluted share.

 

"Kroger continues to deliver consistently remarkable results. We expect to exceed our long-term earnings per share growth rate for fiscal 2014," McMullen said. "Our associates shine brightest during the holiday season and we intend to continue our positive momentum through the fourth quarter."

 

For the fourth quarter of fiscal 2014, Kroger expects identical supermarket sales growth, excluding fuel, of 4% to 5%.

 

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