Kroger Q1 ID sales up 2.4%

CINCINNATI - Kroger on Thursday reported net earnings of $680 million, or $0.70 per diluted share, and identical supermarket sales growth, without fuel, of 2.4% in the first quarter of 2016. Kroger's net earnings during the first quarter last year were $619 million, or $0.62 per diluted share.

"We are very pleased with a solid quarter during which we continued to strengthen our connection with customers and expand our ClickList offering to more customers in more markets," stated Rodney McMullen, chairman and CEO, Kroger. "Fifty consecutive quarters of positive identical supermarket sales growth, excluding fuel, is extraordinary. Our associates work tirelessly to produce these consistently remarkable results," he said. "We've been through all kinds of business cycles during the last 50 quarters, and we've demonstrated time and again that regardless of the environment, you can count on Kroger to continue executing our strategy, investing in growth and creating value for our customers and shareholders."

Total sales increased 4.7% to $34.6 billion in the first quarter compared to $33.1 billion for the same period last year. Total sales, excluding fuel, increased 7.8% in the first quarter compared to the same period last year. Total sales, excluding fuel and Roundy's, increased 3.5% in the first quarter compared to the same period last year.  

Kroger confirmed its net earnings guidance range of $2.19 to $2.28 per diluted share for 2016. Based on current fuel margin trends, the company believes it will be at the low-end to mid-point of this range. Kroger expects fuel margins will be at or slightly below the five-year average.

Kroger also confirmed its identical supermarket sales growth guidance, excluding fuel, of approximately 2.5% to 3.5% for 2016. The company continues to expect capital investments excluding mergers, acquisitions and purchases of leased facilities, to be in the $4.1 to $4.4 billion range for the year.