Kroger reports rise in Q1 sales

CINCINNATI One of the nation's largest traditional grocery retailers reported a rise in its first-quarter sales, compared with the same period last year.

Kroger said that total sales, including fuel, jumped 8.7% to $24.8 billion in first quarter 2010, compared with $22.8 billion for the same period last year. Excluding fuel sales, total sales increased 3.1% in the first quarter, which ended May 22, over the same period last year. Conversely, first-quarter same-store sales increased 2.4%.

Meanwhile, net earnings dropped to $373.7 million, or 58 cents per diluted share, from $435.1 million, or 66 cents per diluted share.

The company confirmed its fiscal guidance and said it continues to expect identical-supermarket sales growth, excluding fuel, of 2% to 3% for the year. Net earnings are expected to range from $1.60 to $1.80 per diluted share for the year. Kroger chairman and CEO David Dillon said that Kroger continued its "customer first" strategy and will "continue to build momentum and grow market share."