What's driving Kroger's 46th straight quarter of positive comps?

CINCINNATI — Kroger has posted its 46th consecutive quarter of positive same-store sales results, excluding fuel, with a 5.7% increase.  

 

“Our results show the power of our Customer 1st Strategy,” Rodney McMullen, Kroger’s chairman and CEO, said. “Our associates are making a difference for our customers by providing excellent service and product quality and selection, and we continue to improve the shopping experience by bringing technology and digital capabilities to our business. Our integration with Vitacost.com is going very well; we are inviting customers in Cincinnati to try ClickList, our order online, pickup at the store solution we are learning from Harris Teeter; and more customers than ever before are engaging with our digital tools.”

 

Kroger generated $33.1 billion in first quarter revenue, representing a slight increase of 0.3%. However, total sales, excluding fuel, increased 6.4% in the first quarter over the same period last year.

 

“Kroger has produced consistently remarkable results for so long that it might be easy for some to take a quarter like this for granted, so it is important to emphasize it is the efforts of our incredible team of associates, connecting with customers, that is driving our success,” McMullen said. “Time and again, we have shown that by taking care of our customers, Kroger is creating sustainable value for our shareholders.”

 

Kroger confirmed its net earnings guidance range of $3.80 to $3.90 per diluted share for fiscal 2015, but raised its identical supermarket sales growth guidance, excluding fuel, to a range of 3.5% to 4.5% for fiscal 2015. The original guidance was 3% to 4%.

 

The company continues to expect capital investments excluding mergers, acquisitions and purchases of leased facilities, to be in the $3 billion to $3.3 billion range for the year.