Kroger reports Q3 numbers, reffirms guidance prior to investor conference

CINCINNATI Kroger has updated its same-store sales guidance for the third quarter of 2008 and reaffirmed its annual same-store sales and earnings per share guidance from last month the company said.

The reaffirmations came just before a conference call today with investors to discuss the company’s standing.

For the eight weeks ended Aug.17, Kroger’s same-store sales grew by more than 5 percent, not including fuel. The second four weeks were stronger than the first, the company said, attributing weaker results to temporary store closures that happened during Hurricane Ike.

David Dillon, Kroger’s chairman and chief executive officer, said in a statement, “Kroger continues to see solid identical sales growth through the first eight weeks of the third quarter because of the commitment of associates in all aspects of our business to our customer-driven strategy. In this uncertain economy, we are delivering value to shoppers on any budget through our Customer 1st approach. Our financial strategy provides us with sufficient liquidity to finance our short-term borrowing needs through our $2.5 billion five-year credit facility that matures in November 2011. On peak borrowing days, we expect that more than $1.2 billion of this facility would remain available.  In addition, Kroger maintains uncommitted money market lines totaling $75 million.”

After review of its year-to-date results, and a restatement its goals moving forward, Kroger reaffirmed its expectation of same-store sales growth by 4.5 percent to 5.5 percent, not including fuel, for fiscal 2008. Kroger also reaffirmed its earnings guidance of $1.85 to $1.90 per diluted share for the period (without effects of Hurricane Ike factored in). This projection reflects growth by 9 percent to 12 percent above the earnings of $1.69 per diluted share in 2007, the company said. 

More details on the company’s guidance were included in the Form 8-K the Company filed with the Securities and Exchange Commission today. Kroger will file its full report for the third quarter Dec. 9.