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KR · Kroger

50 filings

10-Q

KR 10-Q Quarterly Reports

Kroger - 50 quarterly reports

Filing record · 2016–202610-K1210-Q328-K137

KR filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 137 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Oct ’17Oct ’17
  2. Leadership change8-K · Dec ’19Dec ’19
  3. FY2022 annual report10-K · Mar ’22Mar ’22
  4. Impairment8-K · Dec ’25Dec ’25
  1. 2027-Q3

    Kroger Quarterly Report for Q3 Ended Aug 15, 2026

    The Kroger Co. reported second-quarter 2026 sales of $34.62 billion, up 2.0% from $33.94 billion a year earlier, with supermarket fuel sales rising 25.6% on a higher average retail fuel price of 25.3%. Sales without fuel declined 0.5% to $30.52 billion, while identical sales excluding fuel rose 0.2%. Operating profit increased to $971 million from $863 million, and net earnings attributable to The Kroger Co. were $641 million, or $1.05 per diluted share, versus $0.91 a year earlier. Excluding Adjusted Items, adjusted net earnings per diluted share were $1.09, up 4.8% from $1.04, helped by a lower share count and a decreased LIFO charge. For the first two quarters of 2026, net earnings attributable to the company were $1.54 billion, or $2.51 per diluted share, compared with $2.20 a year earlier. Operating cash flow fell to $3.09 billion from $3.69 billion, while payments for property and equipment rose to $2.44 billion from $1.97 billion. Cash and temporary cash investments declined to $1.68 billion from $3.33 billion at fiscal year-end, largely reflecting treasury stock purchases of $1.27 billion and debt repayments of $604 million. Total debt, including finance leases, fell by $569 million from fiscal year-end. The filing also discloses a proposed acquisition of Giant Eagle, Inc. valued at approximately $1.65 billion, including $1.25 billion in cash, with closing expected in fiscal 2027. The company remains a defendant in Albertsons' Delaware suit over a $600 million termination fee, with trial scheduled for October 19, 2026, and it continues to carry opioid settlement liabilities of $133 million current and $845 million long-term.

    Sep 18, 2026
  2. 2027-Q2

    Kroger Quarterly Report for Q2 Ended May 23, 2026

    The Kroger Co. reported first-quarter 2026 results for the 16-week period ended May 23, 2026. Sales rose to $46.12 billion from $45.12 billion, with supermarket fuel sales up 21.3% and sales without fuel up 0.2%. Operating profit increased to $1.41 billion from $1.32 billion, and net earnings attributable to The Kroger Co. were $903 million, or $1.46 per diluted share, versus $1.29 a year earlier. Excluding Adjusted Items, adjusted net earnings were $1.58 per diluted share, up 6.0% from $1.49, though adjusted net earnings in dollars declined 1.6%. Identical sales excluding fuel rose 1.0%, compared with 3.2% in the prior-year quarter, with eCommerce sales up 13%. Cash flow from operations was $1.77 billion, versus $2.15 billion a year earlier, and capital investments, excluding lease buyouts, were $1.45 billion. Kroger repurchased $213 million of shares at an average price of $67.77 and paid $215 million in dividends. Total debt, including finance leases, fell $571 million from fiscal year-end 2025 following repayment of $500 million of 3.5% senior notes. Cash and temporary cash investments stood at $2.87 billion, and $1.8 billion remained under the December 2025 Repurchase Program. The company stated it was in compliance with its financial covenant. Legal matters include opioid settlement liabilities totaling $976 million ($132 million current and $844 million long-term) and the Albertsons merger termination dispute, in which Albertsons seeks a $600 million termination fee, with trial scheduled to begin October 19, 2026. Management believes the aggregate range of loss from litigation is not material.

    Jun 26, 2026
  3. 2026-Q3

    Kroger Quarterly Report for Q3 Ended Nov 8, 2025

    The Kroger Co. reported a third quarter ended November 8, 2025 with sales of $33.86 billion, up 0.7% from $33.63 billion a year earlier, and a net loss attributable to The Kroger Co. of $1.32 billion, or $(2.02) per diluted share, compared with net earnings of $618 million, or $0.84 per diluted share, in the prior-year quarter. The loss reflects $2.6 billion of fulfillment network impairment and related charges tied to the closure of three automated fulfillment facilities in January 2026 and the cancellation of a planned Charlotte, N.C. site. Excluding the 2025 and 2024 adjusted items, adjusted net earnings were $1.05 per diluted share for the quarter, a 7.1% increase, and adjusted FIFO operating profit was $1.09 billion, up 7.1%. Identical sales excluding fuel rose 2.6% in the quarter and 3.1% for the first three quarters, led by pharmacy and eCommerce, where sales increased 17% in the quarter. For the first three quarters of 2025, Kroger reported net earnings attributable to the company of $155 million, or $0.23 per diluted share, versus $2.03 billion, or $2.77, a year earlier. Operating cash flow was $4.66 billion, up from $4.39 billion, while capital investments were $2.86 billion. Cash and temporary cash investments were $3.96 billion at quarter end, and total debt, including finance leases, rose $105 million from fiscal year-end 2024 to $17.9 billion. Kroger repurchased $947 million of common stock in the first three quarters under its December 2024 program, completed final delivery under a $5.0 billion accelerated share repurchase agreement in the third quarter, and had $1.8 billion remaining under the December 2024 authorization. Dividends paid totaled $659 million for the first three quarters. Management stated it expects its eCommerce business to become profitable in 2026 following the strategic review, and it reiterated a net total debt to adjusted EBITDA target range of 2.30 to 2.50 and a total shareholder return target of 8% to 11% over time. The filing also discloses a pending dispute with Albertsons, which seeks a $600 million termination fee that Kroger contends it does not owe.

    Dec 12, 2025
  4. 2026-Q2

    Kroger Quarterly Report for Q3 Ended Aug 16, 2025

    The Kroger Co. reported second-quarter 2025 results (quarter ended August 16, 2025) in this Form 10-Q filed September 19, 2025. Sales were $33.94 billion for the quarter, essentially flat versus $33.91 billion a year earlier, and $79.06 billion for the first two quarters. Operating profit rose to $863 million from $815 million, and net earnings attributable to The Kroger Co. increased to $609 million, or $0.91 per diluted share, from $466 million, or $0.64. Adjusted net earnings per diluted share were $1.04 for the quarter, versus $0.93 a year earlier, and $2.53 for the first two quarters, versus $2.36. Identical sales excluding fuel rose 3.4% in the quarter, led by pharmacy, eCommerce and Fresh, and eCommerce sales increased 16%. Cash flow from operations for the first two quarters was $3.69 billion, up from $3.46 billion. Cash and temporary cash investments were $4.88 billion at August 16, 2025, and total debt including finance leases was roughly $17.96 billion, with long-term debt of $17.13 billion. The company returned $625 million to shareholders through dividends and share repurchases in the first two quarters, and $2.5 billion remained under the December 2024 repurchase program after the pending $1.0 billion of unsettled accelerated share repurchases were reflected. Management highlighted several charges, including $100 million for store closures, a $47 million severance charge tied to a reduction of nearly 1,000 corporate administrative roles, and $121 million of merger-related litigation and settlement charges in the quarter related to the terminated Albertsons merger. The filing notes that the Albertsons litigation is ongoing: Albertsons seeks a $600 million termination fee, which Kroger denies owing. Kroger also disclosed an ongoing comprehensive review of its eCommerce operations that could have a material effect on its financial statements. Leadership is currently an Interim Chief Executive Officer and Chairman, Ronald L. Sargent, and disclosure controls were concluded to be effective.

    Sep 19, 2025
  5. 2026-Q1

    Kroger Quarterly Report for Q2 Ended May 24, 2025

    The Kroger Co. reported first-quarter results for the 16-week period ended May 24, 2025. Sales were $45.12 billion, down slightly from $45.27 billion, as lower fuel sales and the sale of Kroger Specialty Pharmacy offset growth in sales without fuel of $40.78 billion, which rose 1.2%. Operating profit was $1,322 million versus $1,294 million, and net earnings attributable to The Kroger Co. were $866 million, compared with $947 million. Net earnings per diluted share were $1.29, flat year over year. Excluding Adjusted Items, adjusted net earnings per diluted share were $1.49, a 4.2% increase from $1.43, driven by higher adjusted FIFO operating profit, lower income tax expense and fewer shares outstanding, partly offset by higher net interest expense of $199 million versus $123 million. Identical sales excluding fuel and Adjusted Items rose 3.2%, led by pharmacy, eCommerce and Fresh, and eCommerce sales grew 15%. Management noted an approximately $100 million store closure charge tied to closing about 60 stores over 18 months and an incremental $60 million multi-employer pension contribution. Cash flow from operations was $2.15 billion, and cash and temporary cash investments rose to $4.74 billion. Total debt was $17.9 billion, and the company repurchased $181 million of shares during the quarter, with $2.5 billion remaining under its December 2024 repurchase program. The filing also flags legal and operational uncertainties. Albertsons sued Kroger over a $600 million termination fee following the terminated merger, and Kroger has filed counterclaims. The company is conducting a comprehensive review of its eCommerce operations after Ocado drew down the entire $152 million letter of credit in the second quarter of 2025, and the outcome could have a material effect on the financial statements. The filing also notes that the company has an Interim Chief Executive Officer.

    Jun 27, 2025
  6. 2025-Q3

    Kroger Quarterly Report for Q3 Ended Nov 9, 2024

    The Kroger Co. reported third-quarter 2024 sales of $33.63 billion, down 1.0% from $33.96 billion a year earlier, mainly reflecting lower supermarket fuel sales and the sale of Kroger Specialty Pharmacy. Identical sales excluding fuel rose 2.3% in the quarter, though net earnings attributable to Kroger fell to $618 million ($0.84 per diluted share) from $646 million ($0.88). Adjusted net earnings per diluted share rose 3.2% to $0.98 for the quarter, while operating profit declined 9.2% to $828 million. For the first three quarters, operating profit was $2.94 billion and net earnings per diluted share were $2.77, though adjusted EPS of $3.34 was down 2.3%. The balance sheet changed significantly during the period. Kroger issued $10.5 billion of senior notes in August 2024 to fund part of the cash consideration for its proposed merger with Albertsons, lifting cash and temporary cash investments to $13.36 billion and long-term debt to $22.41 billion. On December 10, 2024, a federal court issued a preliminary injunction blocking the merger, and on December 11, 2024 Kroger terminated the merger agreement, stating it owes no Parent Termination Fee. Albertsons has sued Kroger in Delaware seeking a $600 million termination fee, and Kroger denies the allegations. Kroger also terminated its September 2022 repurchase program and authorized a new $7.5 billion program, of which $5.0 billion is expected to be executed through an accelerated share repurchase. Operating cash flow for the first three quarters was $4.39 billion, down from $4.87 billion. Kroger paid $651 million in dividends in the period, and the filing discloses that the company is in the process of a multi-year technology transformation and that Todd A. Foley signed as Interim Chief Financial Officer.

    Dec 13, 2024
  7. 2025-Q2

    Kroger Quarterly Report for Q3 Ended Aug 17, 2024

    The Kroger Co. reported solid second-quarter 2024 results for the 12 weeks ended August 17, 2024, with net earnings attributable to The Kroger Co. of $466 million, or $0.64 per diluted share, compared with a net loss of $180 million, or $(0.25) per diluted share, in the second quarter of 2023. Sales were $33.91 billion, up 0.2%, while adjusted net earnings per diluted share were $0.93, a 3.1% decrease from $0.96. For the first two quarters of 2024, net earnings were $1.41 billion, or $1.93 per diluted share, and adjusted net earnings were $2.36 per diluted share, down 4.5%. Identical sales excluding fuel rose 1.2% in the quarter, and digital sales increased 11%. Operating profit was $815 million in the quarter, and cash flow from operations for the first two quarters was $3.46 billion, down from $4.36 billion a year earlier. The filing is dominated by the proposed merger with Albertsons Companies, Inc. The FTC and several states are seeking to block the deal, and a preliminary injunction hearing in the FTC federal litigation began on August 26, 2024. The merger agreement carries a $600 million termination fee in certain circumstances, and the Merger Outside Date is October 9, 2024, subject to extension. Merger-related costs were $148 million in the second quarter and $323 million in the first two quarters. To fund the cash consideration, Kroger issued $10.5 billion of senior notes on August 20, 2024, and entered into a $5.0 billion revolving credit facility upon the merger's closing. The company also agreed to divest stores and banners to C&S Wholesale Grocers, LLC in connection with the merger. Opioid settlement charges recorded in 2023 remain a source of liabilities. Kroger recorded $1.41 billion of opioid settlement charges in the second quarter of 2023, and $1.0 billion of estimated settlement liability remained at August 17, 2024, with the agreement subject to conditions that have not yet been satisfied. Cash and temporary cash investments were $2.79 billion at quarter end, and the company paused share repurchases in 2022 to prioritize debt reduction.

    Sep 20, 2024
  8. 2025-Q1

    Kroger Quarterly Report for Q2 Ended May 25, 2024

    The Kroger Co. reported first-quarter 2024 results for the 16 weeks ended May 25, 2024, with sales of $45.27 billion, up 0.2% from $45.17 billion a year earlier. Sales without fuel rose 0.6% to $40.31 billion, and identical sales excluding fuel increased 0.5%. Profitability declined: operating profit fell 12.0% to $1.29 billion, net earnings attributable to Kroger decreased 1.6% to $947 million, and diluted EPS was $1.29 versus $1.32. Adjusted net earnings per diluted share were $1.43, down 5.3%, and adjusted FIFO operating profit was $1.50 billion, down 10.2%. Results were pressured by lower pharmacy margins, increased promotional price investments, higher OG&A as a percentage of sales, and a decrease in fuel operating profit, partially offset by a lower LIFO charge of $41 million versus $99 million. Cash flow and liquidity were solid. Net cash from operating activities was $2.34 billion versus $2.86 billion, and cash and temporary cash investments rose to $2.85 billion from $1.88 billion at fiscal year-end 2023. Kroger paid $210 million in dividends and repurchased $103 million of shares under its 1999 program, while the $1.0 billion September 2022 repurchase authorization remains unused. Total debt was about $12.2 billion, consistent with year-end. Capital investments excluding lease buyouts were $1.23 billion. The filing is dominated by the pending merger with Albertsons Companies, Inc., which faces an FTC administrative proceeding and federal and state litigation seeking to block it. The amended divestiture agreement with C&S Wholesale Grocers covers 579 stores in total, and the bridge facility commitment was reduced to $10.65 billion. Kroger also agreed to sell its Kroger Specialty Pharmacy business to CarelonRx for about $485 million, expected to close in the second half of 2024. The filing discloses an interim Chief Financial Officer and contingent opioid settlement liabilities of $1.41 billion.

    Jun 28, 2024
  9. 2024-Q3

    Kroger Quarterly Report for Q3 Ended Nov 4, 2023

    The Kroger Co. reported third-quarter 2023 results (quarter ended November 4, 2023) in this Form 10-Q, with sales of $33.96 billion, down 0.7% from $34.20 billion a year earlier, and net earnings attributable to The Kroger Co. of $646 million, or $0.88 per diluted share, versus $0.55 in the third quarter of 2022. For the first three quarters, sales were $112.98 billion, net earnings were $1.43 billion ($1.95 per diluted share, down 20.1%), and adjusted net earnings per diluted share rose 5.6% to $3.42. The first three quarters included $1.5 billion of opioid settlement charges, which the company says cut diluted EPS by $1.60, and operating profit fell to $1.90 billion from $3.30 billion. Cash generation improved meaningfully. Net cash provided by operating activities was $4.87 billion for the first three quarters, compared with $3.34 billion a year earlier, and cash and temporary cash investments rose to $1.73 billion. Total debt including finance leases declined by $615 million to $12.8 billion from fiscal year-end 2022, and the company paid $586 million in dividends. Share repurchases were paused after the third quarter of 2022 to prioritize de-leveraging, with only $54 million repurchased in the first three quarters of 2023. The filing also details the proposed merger with Albertsons Companies, Inc., at $34.10 per share before a $6.85 special dividend adjustment, with an expected adjusted cash price of $27.25. Following a September 2023 agreement, C&S Wholesale Grocers will acquire 413 stores and related assets for about $1.9 billion in cash, and the transaction is expected to close in early 2024 subject to regulatory clearance. The company also notes that the outside date is January 13, 2024, with extensions possible, and a $600 million termination fee may apply in certain circumstances.

    Dec 8, 2023
  10. 2024-Q2

    Kroger Quarterly Report for Q3 Ended Aug 12, 2023

    The Kroger Co. reported a second-quarter 2023 net loss attributable to The Kroger Co. of $(180) million, or $(0.25) per diluted share, compared with net earnings of $731 million, or $1.00 per diluted share, in the second quarter of 2022. The result reflects opioid settlement charges of $1,413 million ($1,113 million net of tax) recognized in the quarter. Excluding the Adjusted Items, adjusted net earnings attributable to The Kroger Co. were $699 million, or $0.96 per diluted share, versus $0.90 a year earlier. Sales were $33,853 million, down from $34,638 million, with sales excluding fuel up 1.1%. Operating loss was $(479) million for the quarter, while adjusted FIFO operating profit was $989 million. For the first two quarters of 2023, sales were $79,018 million and net earnings attributable to The Kroger Co. were $782 million, or $1.07 per diluted share. Adjusted net earnings were $2.47 per diluted share. Cash provided by operating activities rose to $4,364 million from $2,427 million, and cash and temporary cash investments increased to $2,420 million at August 12, 2023. Total debt including finance leases decreased by $587 million to about $12.8 billion, and the company paid $376 million in dividends. Management now expects identical sales without fuel to land at the low end of its full-year guidance range. The filing also details the proposed merger with Albertsons Companies, Inc. and a September 8, 2023 agreement to sell 413 stores, eight distribution centers and related assets to C&S Wholesale Grocers, LLC for approximately $1.9 billion in cash. The merger is expected to close in early 2024, subject to regulatory clearance. Investors should weigh the opioid settlement obligations and the pending merger financing and closing conditions against the company's underlying operating performance.

    Sep 15, 2023
  11. 2024-Q1

    Kroger Quarterly Report for Q2 Ended May 20, 2023

    The Kroger Co. reported first-quarter 2023 results for the 16-week period ended May 20, 2023. Sales were $45.17 billion, up 1.3% from $44.60 billion, while sales without fuel rose 3.5% to $40.07 billion. Net earnings attributable to The Kroger Co. were $962 million, or $1.32 per diluted share, compared with $664 million, or $0.90 per diluted share, a year earlier. Adjusted net earnings per diluted share were $1.51, up 4.1% from $1.45. Operating profit was $1.47 billion, roughly flat with the prior year, while adjusted FIFO operating profit rose 4.2% to $1.67 billion. Cash from operations was $2.86 billion, compared with $1.10 billion a year earlier, and cash and temporary cash investments rose to $2.63 billion. The quarter included a $62 million charge for a West Virginia opioid litigation settlement, and $40 million in merger-related costs tied to the pending Albertsons merger. The $78 million unrealized loss on the Ocado investment was also excluded from adjusted results. The company reaffirmed its full-year identical sales without fuel and adjusted net earnings per diluted share guidance. Identical sales without fuel grew 3.5%, and the company noted that growth would have been 5.0% excluding the effect of the terminated Express Scripts pharmacy agreement. The proposed Albertsons merger, at $34.10 per share before adjustments, is expected to close in early 2024, subject to regulatory clearance. The adjusted per-share price is currently expected to be $27.25, pending SpinCo adjustments. The company has $17.4 billion of bridge commitments, reduced to $12.65 billion after term loan agreements, and recorded no commercial paper or revolver borrowings at quarter end. Share repurchases were paused in the third quarter of 2022 and remained limited to $29 million in the first quarter.

    Jun 23, 2023
  12. 2023-Q3

    Kroger Quarterly Report for Q3 Ended Nov 5, 2022

    The Kroger Co.'s Form 10-Q for the third quarter ended November 5, 2022 reports sales of $34.20 billion for the quarter, up 7.3% from $31.86 billion a year earlier, and $113.44 billion for the first three quarters, up 8.2%. Net earnings attributable to The Kroger Co. were $398 million for the quarter ($0.55 per diluted share), down from $483 million ($0.64) a year earlier, while the first three quarters brought $1.79 billion ($2.44 per diluted share) versus $1.09 billion ($1.43). Adjusted net earnings per diluted share were $0.88 for the quarter, up 12.8%, and $3.24 for the first three quarters, up 17.0%. Identical sales excluding fuel rose 6.9% in the quarter and 5.4% for the first three quarters. Operating profit was $841 million for the quarter, down 3.1%, and $3.30 billion for the first three quarters, up 31.4%. The filing's most significant item is the proposed merger with Albertsons Companies, Inc., announced October 13, 2022, at $34.10 per share, implying a total enterprise value of approximately $24.6 billion including about $4.7 billion of Albertsons net debt. The company has committed a $17.4 billion bridge term loan facility, and on November 9, 2022 it executed a term loan credit agreement reducing that facility by $4.75 billion. Kroger paused its share repurchase program during the third quarter to prioritize de-leveraging, and the transaction is expected to close in early 2024, subject to regulatory clearance. The filing also states a $600 million termination fee may apply in certain circumstances. Cash flow from operations was $3.34 billion for the first three quarters of 2022, down from $4.79 billion, mainly due to a $2.27 billion inventory build. Cash and temporary cash investments were $916 million at quarter end, and total debt including finance leases was $13.3 billion, roughly flat with fiscal year-end 2021. Third-quarter results included an $85 million opioid litigation settlement charge with the State of New Mexico and $19 million of merger-related costs, both excluded from adjusted results, along with an unrealized loss of $207 million on investments, principally the Ocado stake.

    Dec 9, 2022
  13. 2023-Q2

    Kroger Quarterly Report for Q3 Ended Aug 13, 2022

    The Kroger Co. reported second-quarter 2022 results (quarter ended August 13, 2022) with sales of $34.64 billion, up 9.3% from $31.68 billion a year earlier, and net earnings attributable to The Kroger Co. of $731 million, or $1.00 per diluted share, compared with $0.61 in the second quarter of 2021. Operating profit rose 13.7% to $954 million, and adjusted net earnings per diluted share were $0.90, up 12.5%. For the first two quarters of 2022, sales were $79.24 billion (up 8.6%), diluted EPS was $1.89, and adjusted diluted EPS was $2.36. Management attributed results to identical sales excluding fuel growth of 5.8% in the quarter, higher fuel sales, and cost discipline, while noting a higher LIFO charge of $148 million in the quarter reflecting product cost inflation. Cash flow and balance sheet items were mixed. Cash from operations for the first two quarters was $2.43 billion, down from $3.12 billion, mainly due to working capital changes including inventory growth. The company returned $1.3 billion to shareholders through dividends and share repurchases in the first two quarters, and repurchased 19.0 million shares for $975 million. Cash and temporary cash investments were $1.10 billion at quarter end, and total debt, including finance leases, decreased $87 million from fiscal year end 2021. Total shareowners' equity was $9.66 billion. The company also approved a new $1.0 billion share repurchase program on September 9, 2022, after the prior program was exhausted. The filing also discloses a $429 million unrealized loss on the Ocado equity investment for the first two quarters, and notes that the company is named in opioid-related lawsuits, which management believes are without merit and for which it cannot determine the range of reasonably possible loss. Management raised full-year guidance for identical sales without fuel, adjusted FIFO operating profit, and adjusted net earnings per diluted share.

    Sep 16, 2022
  14. 2023-Q1

    Kroger Quarterly Report for Q2 Ended May 21, 2022

    The Kroger Co. reported first quarter results for the 16-week period ended May 21, 2022, with sales of $44.60 billion, up 8.0% from $41.30 billion a year earlier, driven primarily by higher supermarket fuel sales and total sales to retail customers without fuel. Identical sales excluding fuel rose 4.1%, including 5.2% growth in Fresh categories. Operating profit more than doubled to $1.51 billion (3.4% of sales) from $805 million, and net earnings attributable to Kroger were $664 million, or $0.90 per diluted share, versus $140 million, or $0.18, a year earlier. Adjusted net earnings per diluted share were $1.45, up 21.8%, after excluding a $532 million unrealized loss on the Ocado investment and a $7 million Home Chef contingent consideration charge. Cost and margin trends were mixed. The FIFO gross margin rate fell to 21.84% from 22.73%, and the LIFO charge rose to $93 million from $37 million on higher product cost inflation. OG&A expenses declined to 15.69% of sales from 17.98%, which was the main driver of profit growth. Digital sales decreased about 6% year over year as customers shifted back to stores. Cash from operations was $1.10 billion, compared with $2.26 billion a year earlier, mainly due to working capital changes, including higher inventories. The company returned $819 million to shareholders through $665 million of share repurchases and $154 million of dividends, and total debt rose $275 million, largely from finance leases tied to Ocado fulfillment centers. The filing states that management raised full-year guidance for identical sales without fuel, adjusted FIFO operating profit and adjusted net earnings per diluted share, though the guidance figures themselves are in an exhibit not included in this filing.

    Jun 24, 2022
  15. 2022-Q3

    Kroger Quarterly Report for Q3 Ended Nov 6, 2021

    The Kroger Co. reported third-quarter 2021 sales of $31.86 billion, up from $29.72 billion a year earlier, driven mainly by higher supermarket fuel sales (up 57.7% in the quarter). Sales without fuel rose 2.9% to $28.22 billion, and identical sales without fuel grew 3.1%. Net earnings attributable to The Kroger Co. fell to $483 million ($0.64 per diluted share) from $631 million ($0.80) a year earlier, while adjusted net earnings per diluted share rose 9.9% to $0.78. The quarter's GAAP results were affected by a $694 million unrealized loss on the Ocado investment for the first three quarters, a $449 million pre-tax charge for pension plan withdrawal liabilities, and an $87 million pension settlement charge. For the first three quarters of 2021, net earnings attributable to The Kroger Co. were $1.09 billion ($1.43 per diluted share) versus $2.66 billion ($3.35) in the prior-year period, while adjusted net earnings per diluted share rose 4.1% to $2.77. Operating profit was $2.51 billion, down from $2.94 billion, and LIFO charges increased to $177 million from $77 million amid higher product cost inflation. Cash from operations was $4.79 billion, compared with $5.90 billion a year earlier, and the company returned $1.5 billion to shareholders through repurchases and dividends. Cash and temporary cash investments rose to $2.29 billion. Management stated it expects to deliver over $1 billion of incremental cost savings in 2021 and reaffirmed a net debt to adjusted EBITDA target of 2.30 to 2.50 to maintain its investment grade rating. The company had $511 million remaining under its June 2021 share repurchase program as of November 6, 2021.

    Dec 10, 2021
  16. 2022-Q2

    Kroger Quarterly Report for Q3 Ended Aug 14, 2021

    The Kroger Co. reported second-quarter 2021 sales of $31.68 billion, up from $30.49 billion a year earlier, while net earnings attributable to The Kroger Co. fell to $467 million from $819 million. Diluted EPS was $0.61 versus $1.03. The filing attributes the decline largely to a $122 million unrealized loss on investments in the quarter (versus a $368 million gain in the prior-year quarter), and to lower gross margin. Excluding adjusted items, adjusted net earnings per diluted share rose 9.6% to $0.80 from $0.73, and adjusted FIFO operating profit increased 5.9% to $947 million. Identical sales excluding fuel declined 0.6% in the quarter, and 2.6% for the first two quarters, while the company cited a two-year stacked identical sales growth of 14.0% for the second quarter. For the first two quarters of 2021, net earnings attributable to The Kroger Co. were $607 million, including a $449 million pre-tax charge for pension plan withdrawal liabilities tied to the transfer of Sound Retirement Trust liabilities to the UFCW Consolidated Pension Plan, and a $601 million pre-tax unrealized investment loss. Cash from operations was $3.1 billion versus $5.4 billion a year earlier, reflecting working capital changes. Cash and temporary cash investments rose to $2.2 billion from $1.7 billion at fiscal year-end 2020. The company repurchased $751 million of shares and paid $274 million in dividends in the first two quarters. Total debt, including finance leases, increased by $742 million from fiscal year-end 2020, primarily due to a property transaction in which 28 previously leased stores were acquired and sold, which is accounted for as a financing obligation. The company amended its $2.75 billion revolving credit facility, extending the termination date to July 6, 2026, and removing the fixed charge coverage covenant. Management stated that it expects its liquidity to be adequate for the next twelve months.

    Sep 17, 2021
  17. 2022-Q1

    Kroger Quarterly Report for Q2 Ended May 22, 2021

    The Kroger Co. reported first quarter 2021 results (16 weeks ended May 22, 2021) with sales of $41.30 billion, down 0.6% from $41.55 billion a year earlier. Net earnings attributable to The Kroger Co. fell to $140 million, or $0.18 per diluted share, from $1.21 billion, or $1.52 per diluted share. Operating profit was $805 million versus $1.33 billion. The decline was driven largely by a $449 million pre-tax charge for pension plan withdrawal liabilities and a $479 million unrealized loss on investments. Excluding the Adjusted Items, adjusted net earnings per diluted share were $1.19, down 2.5% from $1.22, and adjusted FIFO operating profit was $1.375 billion, down 5.4%. Identical sales excluding fuel declined 4.1% as the company lapped unprecedented pandemic-driven demand in the prior year, though two-year stacked identical sales growth was 14.9%. Digital sales grew 16%. Supermarket fuel sales rose 48.2%, driven by higher average retail fuel prices. Management said it is on track for over $1 billion of incremental cost savings and expects Alternative Profit growth toward the top of its $100 million to $150 million target range in 2021. Cash from operations was $2.26 billion, versus $4.25 billion a year earlier. Total debt rose $711 million, mainly from a property transaction in which 28 leased stores were bought and sold and the sale was recorded as a financing obligation. Cash and temporary cash investments ended the quarter at $2.31 billion. After quarter end, the Board approved a new $1.0 billion share repurchase program on June 16, 2021, after the prior program was exhausted on June 11, 2021. The company also reiterated its commitment to a net debt to adjusted EBITDA range of 2.30 to 2.50 and to total shareholder returns of 8% to 11%.

    Jun 25, 2021
  18. 2021-Q3

    Kroger Quarterly Report for Q3 Ended Nov 7, 2020

    The Kroger Co. reported strong third-quarter and first-three-quarter 2020 results in this Form 10-Q for the quarter ended November 7, 2020. Third-quarter sales were $29.72 billion, up from $27.97 billion, and net earnings attributable to The Kroger Co. were $631 million, or $0.80 per diluted share, versus $263 million, or $0.32, a year earlier. For the first three quarters, sales reached $101.76 billion and net earnings attributable to Kroger were $2.66 billion, or $3.35 per diluted share. Management cited pandemic-driven demand, with identical sales excluding fuel up 10.9% in the third quarter and 15.3% for the first three quarters, alongside growth in digital revenue and its alternative profit businesses. Adjusted net earnings per diluted share were $0.71 for the quarter and $2.66 for the first three quarters, and management raised its full-year 2020 guidance. Cash generation and shareholder returns were also prominent. Cash from operations was $5.9 billion for the first three quarters, and cash and temporary cash investments rose to $2.18 billion. Kroger repurchased $989 million of shares during the first three quarters and paid $395 million in dividends, while total debt fell by $556 million. Management said it remains committed to a net debt to adjusted EBITDA range of 2.30 to 2.50 to maintain its investment-grade rating. A key forward-looking item is a subsequent event: Kroger expects a pre-tax withdrawal liability charge of $962 million in the fourth quarter of 2020 related to withdrawing from the UFCW National Fund, with an after-tax impact of approximately $760 million including a $27 million transition reserve contribution. The company also deferred $505 million of employer social security tax under the CARES Act and expects to defer a total of approximately $600 to $650 million in 2020.

    Dec 15, 2020
  19. 2021-Q2

    Kroger Quarterly Report for Q3 Ended Aug 15, 2020

    The Kroger Co. reported second-quarter 2020 results (12 weeks ended August 15, 2020) with sales of $30.49 billion, up 8.2% from $28.17 billion a year earlier, and net earnings attributable to The Kroger Co. of $819 million, or $1.03 per diluted share, versus $0.37 per diluted share in the second quarter of 2019. Adjusted net earnings per diluted share were $0.73, up 65.9% from $0.44. For the first two quarters of 2020, sales were $72.04 billion and net earnings attributable to The Kroger Co. were $2.03 billion, or $2.55 per diluted share, with adjusted net earnings of $1.95 per diluted share. Identical sales excluding fuel rose 14.6% in the quarter and 17.1% year to date, which management attributes to unprecedented pandemic-driven demand for grocery and fresh products and market share growth. Supermarket fuel sales fell 33.0% in the quarter as gallons sold declined 15.0% and average retail fuel prices fell 21.3%. Cash and temporary cash investments rose to $2.82 billion at August 15, 2020, from $399 million at fiscal year-end, as the company generated $5.4 billion of operating cash flow in the first two quarters, aided by working capital improvements and CARES Act deferrals of $329 million in employer social security tax. Total debt including finance leases fell $594 million from fiscal year-end 2019 levels. The company repurchased $669 million of its shares in the first two quarters and paid $254 million in dividends. On September 11, 2020, the Board approved a new $1.0 billion share repurchase program replacing the November 2019 program, which had $33 million remaining. The filing also discloses a planned withdrawal from the UFCW International Union-Industry Pension Fund, with an expected pre-tax withdrawal liability charge of $962 million, pending ratification in the third quarter of 2020, and an approximately $760 million after-tax impact including a $27 million transition reserve contribution. Management stated it expects the 2021 business results to be higher than it would have expected before the pandemic, and it reiterated a net debt to adjusted EBITDA target of 2.30 to 2.50 and a long-term total shareholder return of 8% to 11%.

    Sep 22, 2020
  20. 2021-Q1

    Kroger Quarterly Report for Q2 Ended May 23, 2020

    The Kroger Co. reported first quarter 2020 results for the 16-week period ended May 23, 2020, with sales of $41.55 billion, up 11.5% from $37.25 billion, driven by an identical sales increase excluding fuel of 19.0%. The company attributed the surge primarily to unprecedented demand across grocery and fresh departments during the COVID-19 pandemic, partially offset by lower supermarket fuel sales, which fell 38.8%. Operating profit rose to $1.33 billion from $901 million, and net earnings attributable to The Kroger Co. increased to $1.21 billion, or $1.52 per diluted share, versus $0.95 a year earlier. Adjusted net earnings per diluted share were $1.22, up 69.4%, excluding items including a $422 million mark-to-market gain on Ocado securities and $236 million of incremental multi-employer pension contributions. Cash flow and balance sheet strength improved meaningfully. Cash from operations was $4.25 billion, cash and temporary cash investments rose to $2.73 billion, and total debt, including finance leases, fell by $605 million, with commercial paper fully repaid. The company spent $422 million on share repurchases and paid $128 million in dividends. Kroger noted that more than $830 million was invested in COVID-19 related support for associates, customers and communities, and that it is not reaffirming or providing new 2020 guidance, though it expects to exceed its April 1 outlook for identical sales without fuel, adjusted FIFO operating profit and adjusted EPS. Management cautioned that the working capital benefit in the quarter was inflated by pandemic-driven sales and that near-term uncertainty remains high, so it is prioritizing liquidity and financial flexibility. The company remains committed to its dividend and share repurchase program, and it is maintaining its net debt to adjusted EBITDA target range of 2.30 to 2.50 to preserve its investment-grade debt rating.

    Jun 26, 2020
  21. 2020-Q3

    Kroger Quarterly Report for Q3 Ended Nov 9, 2019

    The Kroger Co. reported third-quarter 2019 sales of $27.97 billion (versus $27.83 billion in the third quarter of 2018) and net earnings attributable to The Kroger Co. of $263 million, or $0.32 per diluted share, compared with $317 million, or $0.39 per diluted share, a year earlier. For the first three quarters of 2019, net earnings attributable to the company were $1.33 billion, or $1.64 per diluted share, versus $2.85 billion, or $3.43 per diluted share, in the prior-year period, which included a $1.78 billion gain on the sale of the convenience store business. Adjusted net earnings per diluted share were $0.47 for the third quarter and $1.62 for the first three quarters of 2019. Third-quarter operating profit fell to $254 million from $647 million, driven by a $238 million impairment of Lucky's Market (of which $131 million was attributable to Kroger), a $80 million severance charge and higher multi-employer pension withdrawal charges. Identical sales excluding fuel rose 2.5% in the third quarter and 2.0% for the first three quarters of 2019, and digital revenue grew 21% and 31% respectively. Adoption of the new lease standard added $6.8 billion of operating lease assets and $7.0 billion of lease liabilities on February 3, 2019, and total debt declined $1.6 billion from fiscal year-end 2018. Cash from operations was $4.0 billion for the first three quarters, and the company returned $390 million to shareholders through buybacks and dividends. Management reaffirmed 2019 adjusted net earnings guidance of $2.15 to $2.25 per diluted share and set 2020 adjusted guidance of $2.30 to $2.40 per diluted share.

    Dec 17, 2019
  22. 2020-Q2

    Kroger Quarterly Report for Q3 Ended Aug 17, 2019

    The Kroger Co. reported second-quarter 2019 sales of $28.17 billion (ended August 17, 2019), up from $28.01 billion a year earlier, while net earnings attributable to The Kroger Co. fell to $297 million from $508 million. Diluted EPS was $0.37 versus $0.62 in the prior-year quarter. Excluding the company's adjusted items, adjusted diluted EPS was $0.44 versus $0.41. For the first two quarters, sales were $65.42 billion versus $65.74 billion, and diluted EPS was $1.31 versus $3.03, a decline largely reflecting the prior year's $1.8 billion gain on the sale of the convenience store business. Identical sales excluding fuel rose 2.2% in the quarter and 1.8% year to date, and digital revenue grew 31% in the quarter. The balance sheet changed materially with the adoption of ASU 2016-02 on February 3, 2019, which added $6.86 billion of operating lease assets and $7.14 billion of operating lease liabilities. Total debt, including finance leases, fell to $13.4 billion-equivalent carrying value of $12.6 billion of debt excluding finance leases, after repaying a $1.0 billion term loan and $800 million of commercial paper. Operating cash flow was $3.28 billion for the first two quarters, while capital investments were $1.55 billion. The company disposed of You Technology (to Inmar for $565 million total consideration) and Turkey Hill Dairy ($225 million), and returned $249 million to shareholders through buybacks and dividends in the first two quarters. Management reaffirmed its 2019 identical sales guidance of 2.0% to 2.25% excluding fuel and its adjusted net earnings guidance of $2.15 to $2.25 per diluted share, while its GAAP guidance is $2.30 to $2.40 per diluted share. It is no longer reconfirming the three-year $400 million incremental operating profit expectation, and it expects to provide detailed 2020 guidance in November.

    Sep 24, 2019
  23. 2020-Q1

    Kroger Quarterly Report for Q2 Ended May 25, 2019

    The Kroger Co. reported first-quarter 2019 net earnings attributable to The Kroger Co. of $772 million, or $0.95 per diluted share, compared with $2,026 million, or $2.37 per diluted share, in the first quarter of 2018. The prior-year quarter included a $1.8 billion gain on the sale of the convenience store business unit. Adjusted net earnings were $0.72 per diluted share, compared with $0.73 in the prior-year quarter, a decrease of 1.4%. Total sales were $37.3 billion, down from $37.7 billion, reflecting the convenience store sale and lower fuel sales, while identical sales excluding fuel increased 1.5%. Operating profit was $901 million, or 2.42% of sales, versus $1.0 billion, or 2.73% of sales, a year earlier. The company sold its You Technology business to Inmar for total consideration of $565 million and its Turkey Hill Dairy business for $225 million during the quarter. Digital revenue grew 42%, driven by Pickup and Delivery. Long-term debt decreased as the company made net commercial paper payments of $700 million and repaid a $1.0 billion term loan. Total debt, including finance leases and lease-financing obligations, fell $1.8 billion from the fiscal year-end 2018 level of $15.2 billion. Adoption of the new lease standard, ASU 2016-02, added operating lease assets of $6.8 billion and operating lease liabilities of $7.0 billion as of February 3, 2019. Management maintained its 2019 adjusted net earnings guidance of $2.15 to $2.25 per diluted share and set a GAAP net earnings guidance range of $2.38 to $2.48 per diluted share. It also expects FIFO operating profit of $2.9 billion to $3.0 billion and capital investments of $3.0 billion to $3.2 billion for 2019. The company stated it was in compliance with its financial covenants and expects its liquidity to be adequate for the next twelve months.

    Jun 28, 2019
  24. 2019-Q3

    Kroger Quarterly Report for Q3 Ended Nov 10, 2018

    The Kroger Co. reported third-quarter 2018 sales of $27.67 billion, down from $27.75 billion a year earlier, while sales for the first three quarters rose to $93.07 billion from $91.63 billion. Net earnings attributable to The Kroger Co. were $317 million ($0.39 per diluted share) for the third quarter, compared with $397 million ($0.44) a year earlier. For the first three quarters, net earnings were $2.85 billion ($3.43 per diluted share), boosted by a $1.78 billion pre-tax gain on the sale of its convenience store business unit and a $152 million mark-to-market gain on Ocado securities. The company reported adjusted operating net earnings of $0.48 per diluted share for the third quarter and $1.63 for the first three quarters of 2018. Operating profit for the third quarter fell to $647 million (2.34% of sales) from $747 million (2.69%), reflecting a lower gross margin rate of 21.59% versus 22.41%, a higher LIFO charge and higher rent as a percentage of sales. Identical sales excluding fuel rose 1.6% in the quarter and 1.7% for the first three quarters. Net cash provided by operating activities was $3.73 billion for the first three quarters, up from $3.05 billion, and the company returned $2.3 billion to shareholders through buybacks and dividends during that period, including a $1.2 billion accelerated stock repurchase funded by the convenience store sale proceeds. Kroger reaffirmed its adjusted 2018 operating net earnings guidance of $2.00 to $2.15 per diluted share and lowered its GAAP guidance to $3.80 to $3.95 per diluted share, citing the third-quarter Ocado market value adjustment. Total debt decreased by $571 million from fiscal year-end 2017, and the company stated it was in compliance with its financial covenants. Subsequent events include the December 18, 2018 agreement to sell its You Technology business, which the filing says will produce a material gain, and planned pension plan changes.

    Dec 18, 2018
  25. 2019-Q2

    Kroger Quarterly Report for Q3 Ended Aug 18, 2018

    The Kroger Co. reported second-quarter 2018 sales of $27.87 billion, up from $27.60 billion a year earlier, and sales for the first two quarters of $65.40 billion versus $63.88 billion. Second-quarter net earnings attributable to The Kroger Co. were $508 million, or $0.62 per diluted share, compared with $353 million, or $0.39 per diluted share, in the prior-year quarter. Results were boosted by non-operating items: a $216 million mark-to-market gain on Ocado securities and an $11 million gain on the sale of the convenience store business in the quarter. Excluding the adjusted items, the company reported adjusted net earnings of $0.41 per diluted share for the second quarter and $1.15 for the first two quarters of 2018. Operating profit for the quarter fell to $549 million, or 1.97% of sales, from $684 million, or 2.48% of sales, a year earlier, as the gross margin rate declined to 21.31% from 21.70%. For the first two quarters, the company sold its convenience store business for $2.17 billion, recognized a $1.78 billion gain on the sale, and completed the Home Chef merger and a Partnership Framework Agreement with Ocado. Net cash provided by operating activities was $3.26 billion, and restock free cash flow was $1.2 billion versus $1.8 billion a year earlier. The company returned $2.2 billion to shareholders through share repurchases and dividends, including a $1.2 billion accelerated stock repurchase funded with sale proceeds. Total debt, including capital leases and financing obligations, decreased $1.1 billion from fiscal year-end 2017 to $14.2 billion as of August 18, 2018, primarily due to commercial paper repayments, partly offset by a $1.0 billion term loan. Management raised its 2018 GAAP net earnings guidance to $3.88 to $4.03 per diluted share from $3.64 to $3.79, mainly due to the Ocado unrealized gain, and left the adjusted range at $2.00 to $2.15. It expects identical sales growth excluding fuel of 2.0% to 2.5% and capital investments of about $3.0 billion for 2018.

    Sep 25, 2018
  26. 2019-Q1

    Kroger Quarterly Report for Q2 Ended May 26, 2018

    The Kroger Co. reported first quarter 2018 results (16 weeks ended May 26, 2018) with sales of $37.53 billion, up 3.4% from $36.29 billion a year earlier, and operating profit of $1.0 billion, or 2.74% of sales, compared with $631 million, or 1.74% of sales, in the prior-year quarter. Net earnings attributable to The Kroger Co. were $2,026 million, or $2.37 per diluted share, versus $0.32 per diluted share in the first quarter of 2017. That result includes a $1,771 million pre-tax gain on the sale of the convenience store business unit, which contributed $1.59 per diluted share. Excluding the Adjusted Items, adjusted net earnings were $0.73 per diluted share, up 25.9% from $0.58. Identical sales excluding fuel increased 1.9%, and the company said digital revenue rose 66%, driven by ClickList. Gross margin rate fell to 21.76% of sales from 22.06%, while OG&A improved to 16.31% of sales from 17.55%, and a lower LIFO charge of $15 million (versus $25 million) helped results. Operating cash flow was $2.4 billion, and free cash flow was $1.6 billion, the same as in the prior-year quarter. The company returned $1.9 billion to shareholders through share repurchases and dividends, including a $1.2 billion accelerated stock repurchase program, of which $1.1 billion settled in the quarter. Total debt fell to about $13.5 billion from $14.8 billion of total debt, excluding capital leases and financing obligations, at fiscal year-end, mainly from $2.1 billion of net commercial paper payments and repayment of $200 million of 7% senior notes, partly offset by a $1.0 billion term loan due March 2019. The company also entered a partnership with Ocado, buying 33.1 Ocado shares for $243 million, and completed the Home Chef merger on June 22, 2018, at an initial price of $200 million plus up to $500 million in earnouts. Management raised the low end of its 2018 GAAP diluted EPS guidance to $3.64 to $3.79 and its adjusted EPS guidance to $2.00 to $2.15.

    Jun 29, 2018
  27. 2018-Q3

    Kroger Quarterly Report for Q3 Ended Nov 4, 2017

    The Kroger Co. reported third-quarter 2017 sales of $27.75 billion, up 4.5% from $26.56 billion a year earlier, and sales for the first three quarters of $91.63 billion, also up 4.5%. Net earnings per diluted share were $0.44 in the third quarter, up 7.3% from $0.41. For the first three quarters, net earnings per diluted share fell 24.3% to $1.15 from $1.52, and adjusted net earnings per diluted share fell 11.3% to $1.41 from $1.59. The filing attributes the lower year-to-date results to a lower gross margin, higher OG&A and depreciation and amortization expenses, and a higher LIFO charge. Identical supermarket sales excluding fuel rose 1.1% in the third quarter and 0.4% for the first three quarters. Cash flow and balance sheet actions dominated the quarter. Management contributed $1.0 billion to Company-sponsored pension plans, which the filing says will significantly address their underfunded position and generates a $375 million tax benefit. Net cash provided by operating activities was $3.05 billion for the first three quarters, and free cash flow was $1.0 billion versus $183 million a year earlier. The company returned $1.6 billion to shareholders through share repurchases and dividends, and total debt carrying value rose to $14.06 billion at November 4, 2017. The company also announced it is exploring strategic alternatives, including a potential sale, of its convenience store business, whose assets and liabilities are classified as held for sale. Full-year 2017 guidance calls for net earnings of $1.74 to $1.79 per diluted share and adjusted net earnings of $2.00 to $2.05 per diluted share. The company expects full-year FIFO operating margin excluding fuel and certain items to decline approximately 25 to 35 basis points versus 2016. It also expects a one-time non-cash pension settlement charge of approximately $400 million in the fourth quarter, a subsequent event following a December 5, 2017 settlement of certain pension obligations.

    Dec 8, 2017
  28. 2018-Q2

    Kroger Quarterly Report for Q3 Ended Aug 12, 2017

    The Kroger Co. reported second-quarter 2017 sales of $27.60 billion, up 3.9% from $26.57 billion a year earlier, and two-quarter sales of $63.88 billion, up 4.4%. Net earnings attributable to The Kroger Co. were $0.39 per diluted share for the second quarter, compared with $0.40 in the prior-year quarter, and $0.71 per diluted share for the first two quarters, compared with $1.11. Adjusted net earnings per diluted share were $0.97 for the first two quarters of 2017, down 17.8% from $1.18. The filing attributes the decline primarily to lower non-fuel FIFO operating profit, a higher LIFO charge and increased interest expense. Identical supermarket sales excluding fuel rose 0.7% in the second quarter and 0.2% for the first two quarters. Gross margin rate fell to 21.70% in the second quarter from 22.09%, reflecting price investments. Cash generation and capital allocation were strong. Net cash from operating activities was $3.3 billion for the first two quarters, and free cash flow was $1.9 billion. The company returned $1.3 billion to shareholders through share repurchases and dividends in the period. Total debt was roughly flat year over year, with $1.5 billion of senior notes issued in the second quarter and $1.425 billion of commercial paper repaid. Subsequent to quarter end, the company entered into an amended and restated $2.75 billion revolving credit facility maturing in August 2022, and it made a $1 billion ($650 million net of tax) pension contribution in the third quarter. For fiscal 2017, Kroger expects net earnings of $1.74 to $1.79 per diluted share and adjusted net earnings of $2.00 to $2.05 per diluted share, including the 53rd week, and expects capital investments of $3.0 to $3.3 billion. The company also expects identical supermarket sales growth excluding fuel of 0.5% to 1.0% for the remainder of 2017, and it noted that its guidance does not include effects from hurricanes Harvey or Irma.

    Sep 15, 2017
  29. 2018-Q1

    Kroger Quarterly Report for Q2 Ended May 20, 2017

    The Kroger Co. reported first-quarter 2017 results for the 16-week period ended May 20, 2017. Sales rose to $36.29 billion from $34.60 billion, up 4.9%, driven by higher supermarket sales without fuel, higher fuel sales and the merger with ModernHEALTH. Profitability declined sharply. Net earnings attributable to The Kroger Co. were $303 million, or $0.32 per diluted share, versus $696 million, or $0.71, a year earlier. Results include $199 million for multi-employer pension plan withdrawal liabilities and $184 million for a voluntary retirement offering. Excluding these 2017 Adjusted Items, adjusted net earnings per diluted share were $0.58, down 18.3%. Operating profit fell to $622 million, or 1.71% of sales, from $1.2 billion, or 3.47%. The gross margin rate declined to 22.06% from 22.93%, which management attributed primarily to continued price investments and a deflationary operating environment. Identical supermarket sales excluding fuel decreased 0.2%. Cash generation remained solid. Net cash provided by operating activities was $2.3 billion, and capital investments totaled $921 million. The company returned $884 million to shareholders through share repurchases and dividends, and total debt including capital leases and financing obligations decreased $633 million from fiscal year-end 2016, mainly due to lower commercial paper borrowings. Management estimates twelve-month liquidity needs of $6.0 to $6.5 billion and expects to refinance upcoming maturities. For 2017, the company expects diluted net earnings of $1.74 to $1.79 per share, and adjusted diluted net earnings of $2.00 to $2.05 per share, excluding the 2017 Adjusted Items. On June 22, 2017, the Board approved a new $1 billion share repurchase program.

    Jun 27, 2017
  30. 2017-Q3

    Kroger Quarterly Report for Q3 Ended Nov 5, 2016

    The Kroger Co. reported third-quarter 2016 sales of $26.56 billion, up from $25.08 billion in the prior-year quarter, with net earnings attributable to The Kroger Co. of $391 million, or $0.41 per diluted share, compared with $428 million, or $0.43, a year earlier. For the first three quarters of 2016, sales were $87.73 billion and net earnings were $1.47 billion, or $1.52 per diluted share. Results include a $111 million pre-tax ($71 million after-tax) charge to restructure certain pension obligations; excluding this item, adjusted net earnings per diluted share were $1.59 for the first three quarters, up from $1.50 a year earlier. Management cited a deflationary operating environment, lower fuel sales and fuel margins, and the loss of sales leverage as pressures on margins, with identical supermarket sales excluding fuel rising 0.1% in the quarter and 1.5% for the first three quarters. Balance sheet and cash flow shifted over the period. Total debt rose to $13.09 billion of debt excluding capital leases, largely from $2.19 billion of commercial paper, and the company issued $1.75 billion of senior notes and repaid $2.08 billion of other notes during the quarter. Operating cash flow was $3.46 billion for the first three quarters, down from $3.85 billion, while capital investments excluding mergers were $3.0 billion. The company repurchased $1.4 billion of its shares in the first three quarters, and it invested $407 million in the ModernHEALTH merger, which closed on September 2, 2016. Management reiterated 2016 guidance of net earnings of $2.03 to $2.08 per diluted share, or $2.10 to $2.15 excluding the $0.07 pension charge, and said 2017 net earnings growth will likely be below the low end of its 8% to 11% long-term growth rate. It also noted ongoing labor negotiations with UFCW locals and a Teamsters unit, and that the company expects to refinance upcoming maturities of about $2.2 billion of commercial paper and $600 million of senior notes.

    Dec 13, 2016
  31. 2017-Q2

    Kroger Quarterly Report for Q3 Ended Aug 13, 2016

    The Kroger Co. reported its second-quarter 2016 results for the 12 weeks ended August 13, 2016. Sales rose 4.0% to $26.57 billion, driven by growth in supermarket sales without fuel, which increased 7.2%, partly offset by a 13.4% decline in fuel sales. Net earnings attributable to The Kroger Co. fell 11.5% to $383 million, or $0.40 per diluted share, reflecting $111 million in pre-tax ($71 million after-tax) charges tied to restructuring certain multi-employer pension obligations. Excluding these items, adjusted net earnings per diluted share were $0.47, up 6.8% from $0.44 a year earlier. Identical supermarket sales excluding fuel rose 1.7% for the quarter and 2.1% for the first two quarters. For the first two quarters of 2016, net earnings attributable to Kroger were $1.08 billion, or $1.11 per diluted share, and adjusted diluted EPS was $1.18, up 11.3%. Management cited a deflationary operating environment, investments in lower prices and labor hours, and a lower LIFO charge as key factors shaping margins. Operating profit was $665 million for the quarter, down from $774 million, and was 2.50% of sales. Operating cash flow for the first two quarters was $3.03 billion, against $1.94 billion of investing outflows and $1.05 billion of financing outflows. The company returned $1.3 billion to shareholders through repurchases and dividends in the first two quarters, and it closed its ModernHEALTH specialty pharmacy acquisition for approximately $390 million on September 2, 2016, funded with commercial paper. Full-year 2016 guidance calls for diluted EPS of $2.03 to $2.13, or $2.10 to $2.20 on an adjusted basis, and capital investments of $3.6 to $3.9 billion. Total debt was $11.67 billion at August 13, 2016, with commercial paper borrowings rising to $1.275 billion. The company stated it expects its liquidity needs over the next twelve months to be between $6.4 billion and $6.9 billion, which it expects to cover through operating cash flow and its borrowing programs.

    Sep 20, 2016
  32. 2017-Q1

    Kroger Quarterly Report for Q2 Ended May 21, 2016

    The Kroger Co. reported first-quarter 2016 results for the 16-week period ended May 21, 2016, with sales of $34.6 billion, up from $33.1 billion a year earlier. Net earnings attributable to The Kroger Co. rose to $680 million, or $0.70 per diluted share, from $619 million, or $0.62 per diluted share. The filing attributes the earnings increase primarily to higher non-fuel FIFO operating profit, a lower LIFO charge and higher earnings from fuel, partly offset by increased tax expense. Identical supermarket sales excluding fuel increased 2.4%, and management described product cost inflation as slightly positive. Cash generation and capital allocation were central to the quarter. Net cash provided by operating activities was $2.1 billion, compared with $1.8 billion in the prior-year quarter. Capital investments were $1.1 billion, and the company invested $1.0 billion to repurchase 27.1 million common shares at an average price of $37.94. The Share Repurchase Programs were exhausted during the quarter, and on June 22, 2016 the Board approved a new $500 million repurchase program, under which no repurchases had been made as of June 28, 2016. Total debt, including capital leases and financing obligations, increased $307 million from fiscal year-end 2015, primarily due to higher commercial paper borrowings. The company reiterated its 2016 outlook, expecting net earnings of $2.19 to $2.28 per diluted share, identical supermarket sales growth excluding fuel of 2.5% to 3.5%, and capital investments of $4.1 to $4.4 billion. It estimates twelve-month liquidity needs of $6.7 to $7.2 billion and states that operating cash flows and its credit facilities should be adequate to meet those needs. The filing also notes the December 2015 merger with Roundy's, which contributed to higher sales, rent and depreciation expense.

    Jun 28, 2016
  33. 2016-Q3

    Kroger Quarterly Report for Q3 Ended Nov 7, 2015

    The Kroger Co. reported third quarter 2015 results for the period ended November 7, 2015, with total sales of $25.075 billion, up 0.4% from $24.987 billion a year earlier, and net earnings attributable to The Kroger Co. of $428 million, or $0.43 per diluted share, compared with $362 million, or $0.36 per diluted share, in the third quarter of 2014. Excluding certain 2014 tax benefits, adjusted third quarter 2014 earnings were $345 million, or $0.35 per diluted share. For the first three quarters of 2015, net earnings were $1.48 billion, or $1.50 per diluted share, versus $1.21 billion, or $1.20 per diluted share, a year earlier. The company attributed the improvement mainly to higher non-fuel FIFO operating profit, a much lower LIFO charge, and better fuel operations, partly offset by a $80 million contribution to the UFCW Consolidated Pension Plan and higher tax expense. Identical supermarket sales excluding fuel rose 5.4% in the quarter and 5.5% for the first three quarters. Kroger's balance sheet grew over the period, with total assets of $31.907 billion at November 7, 2015, versus $30.497 billion at January 31, 2015. Total debt was $11.3 billion, and cash provided by operating activities for the first three quarters was $3.8 billion, while capital investments excluding lease buyouts were $2.6 billion. The company raised its 2015 guidance, now expecting net earnings of $2.02 to $2.04 per diluted share and identical supermarket sales growth excluding fuel of approximately 5.0% to 5.25% for the year. It also disclosed a pending merger with Roundy's, Inc. for about $800 million, expected to close in the fourth quarter of 2015 and to be financed with existing credit facilities and commercial paper. The filing also notes a $500 million share repurchase program approved June 25, 2015, under which no repurchases had been made as of November 7, 2015. Treasury stock purchases were $659 million for the first three quarters. Management stated that various legal claims are not expected to have a material effect on financial results, and it flagged new risk from payment card industry liability shifts for EMV transactions effective October 1, 2015.

    Dec 17, 2015
  34. 2016-Q2

    Kroger Quarterly Report for Q3 Ended Aug 15, 2015

    The Kroger Co. reported second-quarter 2015 sales of $25.5 billion, up from $25.3 billion a year earlier, with net earnings attributable to The Kroger Co. of $433 million, or $0.44 per diluted share, compared with $347 million, or $0.35 per diluted share, in the second quarter of 2014. For the first two quarters of 2015, net earnings were $1.1 billion, or $1.06 per diluted share, versus $848 million, or $0.84 per diluted share, in the prior-year period, which included a $0.06 per diluted share charge tied to pension plan agreements. Identical supermarket sales excluding fuel rose 5.3% in the quarter and 5.5% year to date, and management raised the lower and upper ends of its 2015 guidance for net earnings per diluted share and identical sales excluding fuel. The company's results were supported by increased non-fuel FIFO operating profit and higher fuel earnings, partly offset by higher tax expense. Operating profit was $774 million in the quarter, compared with $644 million a year earlier. Fuel sales fell 18.8% in the quarter as the average retail fuel price dropped 24.5%. Cash provided by operating activities was $2.8 billion for the first two quarters, while capital investments excluding lease buyouts were $1.7 billion. The company repurchased $628 million of its common shares in the first two quarters and approved a new $500 million repurchase program in June 2015. On the balance sheet, total debt was $11.3 billion, and management estimates liquidity needs over the next twelve months at approximately $4.9 billion, including about $928 million of commercial paper and $500 million of senior notes maturing in the third quarter of 2015, which it expects to refinance. The company also completed a two-for-one stock split effective July 13, 2015, and guided to 2015 net earnings of $1.92 to $1.98 per diluted share, with identical supermarket sales growth excluding fuel of 4.0% to 5.0%.

    Sep 22, 2015
  35. 2016-Q1

    Kroger Quarterly Report for Q2 Ended May 23, 2015

    The Kroger Co. reported first-quarter 2015 results for the 16-week period ended May 23, 2015. Sales were $33.05 billion, up 0.3% from $32.96 billion a year earlier, as growth in supermarket sales without fuel ($27.36 billion, up 5.8%) was largely offset by lower fuel sales, which fell 26.0% on a 31.4% decline in the average retail fuel price. Net earnings attributable to The Kroger Co. rose to $619 million, or $1.25 per diluted share, from $501 million, or $0.98, in the prior-year quarter. The prior-year figure included an $87 million pre-tax charge ($56 million after tax, or $0.11 per diluted share) for pension plan agreements. Excluding that charge, adjusted prior-year net earnings were $557 million, or $1.09 per diluted share, and the company said net earnings grew 11.1% on that basis. Identical supermarket sales excluding fuel increased 5.7%, the 46th consecutive quarter of positive identical supermarket sales growth. Cash generation and capital spending were steady to higher. Net cash from operating activities was $1.76 billion, compared with $1.75 billion a year earlier. Payments for property and equipment were $879 million, and total capital investments excluding lease buyouts were $915 million, versus $709 million in the prior-year quarter. The company repurchased $585 million of its common shares, or 8.0 million shares at an average price of $73.48. Total debt including capital leases was $11.3 billion, down $290 million from year-end 2014. Management raised the lower and upper ends of its identical supermarket sales guidance for fiscal 2015 and reaffirmed diluted EPS guidance of $3.80 to $3.90 before the stock split. After the quarter, the Board of Directors approved a two-for-one stock split in the form of a 100% stock dividend, with shares distributed on or about July 13, 2015, and a new $500 million share repurchase program to replace the exhausted prior authorization. Post-split, the company expects fiscal 2015 diluted EPS of $1.90 to $1.95, and it expects identical supermarket sales growth excluding fuel of 3.5% to 4.5% for the year.

    Jun 30, 2015
  36. 2015-Q3

    Kroger Quarterly Report for Q3 Ended Nov 8, 2014

    The Kroger Co. reported a strong third quarter ended November 8, 2014, with sales of $24.99 billion, up from $22.47 billion a year earlier, and net earnings attributable to the company of $362 million, or $0.73 per diluted share, compared with $299 million, or $0.57 per diluted share, in the prior-year quarter. Management attributes the sales increase primarily to the Harris Teeter merger, which closed January 28, 2014, along with identical supermarket sales growth of 5.6% excluding fuel. Excluding certain tax items, adjusted net earnings were $345 million, or $0.69 per diluted share. For the first three quarters of 2014, net earnings were $1.21 billion, or $2.41 per diluted share, and adjusted net earnings were $2.48 per diluted share after excluding a $56 million after-tax charge tied to restructuring certain pension plan agreements. The balance sheet and cash flow picture shows higher leverage and heavier capital returns. Total debt rose to $11.5 billion from $8.3 billion a year earlier, reflecting debt raised to fund the Harris Teeter merger and share repurchases. During the first three quarters, Kroger repurchased 27.9 million shares for $1.3 billion, and net cash from operating activities was $3.47 billion. Cash used in investing activities was $2.30 billion, driven by capital spending and the Vitacost.com acquisition, which closed August 18, 2014 for $287 million. Management estimates twelve-month liquidity needs of approximately $4.9 billion and expects to refinance roughly $800 million of senior notes and commercial paper maturing within that period. Management raised the lower and upper ends of its guidance, now expecting fiscal 2014 adjusted net earnings of $3.32 to $3.36 per diluted share, excluding certain tax items and the pension plan agreements. It also expects identical supermarket sales growth excluding fuel of 4.0% to 5.0% in the fourth quarter, a LIFO charge of approximately $180 million for 2014, and interest expense of approximately $485 million. Management indicated that fuel margins returning to historical levels would push fiscal 2015 results toward the low end of its long-term 8% to 11% earnings per share growth guidance.

    Dec 16, 2014
  37. 2015-Q2

    Kroger Quarterly Report for Q3 Ended Aug 16, 2014

    The Kroger Co. reported net earnings attributable to The Kroger Co. of $347 million, or $0.70 per diluted share, for the second quarter ended August 16, 2014, compared with $317 million, or $0.60 per diluted share, a year earlier. Sales rose to $25.31 billion from $22.69 billion, driven by the Harris Teeter merger (closed January 28, 2014), identical supermarket sales growth excluding fuel of 4.8%, and higher fuel gallon sales. For the first two quarters, net earnings were $848 million, or $1.68 per diluted share, including a $0.11 per diluted share charge tied to multi-employer pension plan agreements. Excluding that charge, adjusted net earnings were $904 million, or $1.79 per diluted share. Operating profit for the quarter was $644 million (2.54% of sales) versus $595 million (2.62% of sales) a year earlier. Net cash provided by operating activities for the first two quarters was $2.75 billion, while treasury stock purchases totaled $1.22 billion over the period. Total debt rose to $11.2 billion from $7.9 billion a year earlier, reflecting financing of the Harris Teeter merger and share repurchases. Management raised the lower and upper ends of its fiscal 2014 guidance for adjusted net earnings per diluted share and identical supermarket sales. After the quarter end, on August 18, 2014, Kroger acquired Vitacost.com, Inc. for approximately $280 million in total. Management stated it expects liquidity needs over the next twelve months of approximately $4.6 billion, and that operating cash flow and other sources of liquidity will be adequate to meet those needs.

    Sep 23, 2014
  38. 2015-Q1

    Kroger Quarterly Report for Q2 Ended May 24, 2014

    The Kroger Co. reported first-quarter 2014 results for the 16-week period ended May 24, 2014. Sales rose to $32.96 billion from $30.00 billion, driven by the Harris Teeter merger (closed January 28, 2014), identical supermarket sales growth, and higher fuel gallon sales. Net earnings attributable to The Kroger Co. were $501 million, or $0.98 per diluted share, compared with $481 million, or $0.92 per diluted share, a year earlier. Results include an $87 million pre-tax ($56 million after-tax, or $0.11 per diluted share) charge tied to restructuring certain multiemployer pension plan obligations. Excluding that charge, adjusted net earnings were $557 million, or $1.09 per diluted share, an increase of 18.5% over the prior-year first quarter. Identical supermarket sales excluding fuel increased 4.6%, and the company stated that every supermarket store department and operating division had positive identical sales. Operating profit was $930 million, or 2.82% of sales, versus $879 million, or 2.93%, a year earlier. Total debt rose to $11.3 billion from $7.9 billion a year earlier, mainly reflecting financing for the Harris Teeter merger and share repurchases. The company repurchased 25.7 million shares for $1.1 billion during the quarter at an average price of $44.41. Following the quarter, Kroger entered into an amended and restated $2.75 billion unsecured revolving credit facility maturing June 30, 2019, and raised its fiscal 2014 guidance for net earnings per diluted share and identical supermarket sales. Management expects fiscal 2014 net earnings per diluted share of $3.19 to $3.27 excluding the pension plan agreements, identical supermarket sales growth excluding fuel of 3.0% to 4.0%, and capital investments of approximately $2.8 to $3.0 billion. Cash from operations was $1.78 billion, and the company estimates twelve-month liquidity needs of approximately $4.8 billion.

    Jul 1, 2014
  39. 2014-Q3

    Kroger Quarterly Report for Q3 Ended Nov 9, 2013

    The Kroger Co. reported third-quarter 2013 results for the 12 weeks ended November 9, 2013. Sales rose to $22.51 billion from $21.81 billion, and net earnings attributable to The Kroger Co. fell to $299 million, or $0.57 per diluted share, from $317 million, or $0.60, a year earlier. Management attributed the decline to a net $23 million benefit from certain tax items offset by Harris Teeter merger expenses, and said adjusted net earnings rose 13.6% to $276 million ($0.53 per diluted share) excluding those items and the prior-year adjustments tied to the UFCW pension plan and a credit card settlement. Identical supermarket sales excluding fuel increased 3.5% in the quarter and 3.4% for the first three quarters. For the first three quarters of 2013, net earnings were $1.10 billion, or $2.09 per diluted share, and operating profit was $2.01 billion. Operating cash flow was $2.92 billion, capital payments for property and equipment were $1.79 billion, and treasury stock purchases were $384 million. Total debt decreased to about $8.3 billion, and the company stated it had $425 million of commercial paper outstanding and no borrowings under its credit agreement. The filing also describes a pending acquisition of Harris Teeter Supermarkets, Inc. for approximately $2.5 billion in cash, expected to close in the fourth quarter of fiscal 2013 subject to Federal Trade Commission review. The company has an unsecured bridge loan of up to $850 million for this merger and expects to fund it through cash on hand and new short-term and long-term debt. Management's fiscal 2013 outlook calls for diluted EPS of $2.73 to $2.80, excluding certain tax items and the Harris Teeter merger.

    Dec 13, 2013
  40. 2014-Q2

    Kroger Quarterly Report for Q3 Ended Aug 17, 2013

    The Kroger Co. reported second-quarter 2013 sales of $22.7 billion, up from $21.7 billion a year earlier, and net earnings attributable to The Kroger Co. of $317 million, or $0.60 per diluted share, versus $279 million, or $0.51 per diluted share, in the second quarter of 2012. For the first two quarters of 2013, net earnings were $798 million, or $1.52 per diluted share, compared with $718 million, or $1.29 per diluted share. Management attributed the increase primarily to higher non-fuel FIFO operating profit and a lower LIFO charge, partly offset by a higher effective tax rate. Identical supermarket sales without fuel rose 3.3% in the quarter, and the company maintained its 2013 guidance of net earnings of $2.73-$2.80 per diluted share. The balance sheet shows total debt of $7.9 billion at quarter end, with the company issuing $1.0 billion of senior notes in the quarter and reducing commercial paper by $1.6 billion year to date. Cash flow from operations was $2.6 billion for the first two quarters, versus $2.0 billion a year earlier, while capital investments were $1.1 billion. Share repurchases slowed, with $236 million spent in the first two quarters, as the company prepares for its pending merger with Harris Teeter Supermarkets, Inc. for approximately $2.5 billion in cash, which is expected to close in the fourth quarter of 2013. The company also disclosed that W. Rodney McMullen will succeed David B. Dillon as Chief Executive Officer effective January 1, 2014, with Dillon remaining Chairman through December 31, 2014. Management stated it expects to fund the merger through cash on hand and new short-term and long-term debt, supported by a bridge loan of up to $850 million.

    Sep 24, 2013
  41. 2014-Q1

    Kroger Quarterly Report for Q2 Ended May 25, 2013

    The Kroger Co. reported first quarter 2013 (16 weeks ended May 25, 2013) sales of $30.04 billion, up from $29.07 billion in the prior-year quarter, and net earnings attributable to The Kroger Co. of $481 million, or $0.92 per diluted share, compared with $439 million, or $0.78 per diluted share, a year earlier. Management attributed the earnings increase primarily to higher non-fuel FIFO operating profit and a lower LIFO charge ($17 million versus $46 million), partially offset by a higher effective tax rate of 35.5% and lower fuel earnings. Identical supermarket sales without fuel rose 3.3%, and the company raised the lower and upper ends of its 2013 guidance, now $2.73-$2.80 per diluted share. The balance sheet shows total debt reduced to $7.5 billion of debt excluding capital leases, with $1.1 billion of commercial paper outstanding and $400 million of 5.00% senior notes repaid at maturity. Operating cash flow was $1.62 billion, against $1.30 billion a year earlier, while capital investments totaled $646 million. The company repurchased 4.5 million shares for $146 million during the quarter and had $448 million remaining under its $500 million repurchase program. Management expects to refinance about $1.5 billion of debt through new senior notes over the next twelve months and states that its liquidity should be adequate for the foreseeable future. The filing also lists several risks to the outlook, including upcoming labor agreements to be renegotiated in 2013 in Dallas, Seattle, Roanoke and Cincinnati, pension and health care cost pressures, fuel-related margin dilution, and pharmacy sales pressure from brand drugs coming off patent. Management believes pending litigation will not have a material adverse effect on the company's financial position, results of operations or cash flows.

    Jun 28, 2013
  42. 2013-Q3

    Kroger Quarterly Report for Q3 Ended Nov 3, 2012

    The Kroger Co. reported third-quarter 2012 results for the quarter ended November 3, 2012, with sales of $21.8 billion, up from $20.6 billion a year earlier, and net earnings attributable to The Kroger Co. of $317 million, or $0.60 per diluted share, versus $196 million, or $0.33, in the prior-year quarter. The company stated that these results include a $0.14 per diluted share benefit from a settlement with Visa and MasterCard and from a reduction in its obligation to fund the UFCW consolidated pension fund. Excluding these adjusted items, net earnings were $243 million, or $0.46 per diluted share. For the first three quarters of 2012, net earnings were $1.0 billion, or $1.89 per diluted share, or $1.76 excluding adjusted items. Identical supermarket sales excluding fuel rose 3.2% in the quarter and 3.7% for the first three quarters. Kroger raised the lower and upper ends of its fiscal 2012 guidance for net earnings per diluted share excluding adjusted items, now $2.44 to $2.46. Its fourth-quarter guidance implies $0.68 to $0.70 per diluted share. Gross margin rate fell to 20.29% from 20.57%, reflecting higher fuel sales, continued price investments and higher shrink and warehouse and transportation costs. Lower LIFO charges helped earnings, which the company attributed to lower expected product cost inflation. Liquidity remained adequate. Cash and temporary cash investments were $435 million at quarter-end, and the company borrowed $1 billion under its credit facility during the last week of the quarter as a precaution during the East Coast storm, repaying it in the first week of the fourth quarter. Total debt rose to $8.9 billion, and the company repurchased 14.5 million shares for $333 million in the quarter. The company also disclosed a subsequent purchase of Axium Pharmacy in the fourth quarter.

    Dec 11, 2012
  43. 2013-Q2

    Kroger Quarterly Report for Q3 Ended Aug 11, 2012

    The Kroger Co. reported second-quarter 2012 sales of $21.7 billion, up from $20.9 billion a year earlier, and net earnings attributable to The Kroger Co. of $279 million, or $0.51 per diluted share, compared with $281 million, or $0.46 per diluted share, in the second quarter of 2011. For the first two quarters of 2012, net earnings were $718 million, or $1.29 per diluted share, versus $713 million, or $1.17 per diluted share. The filing attributes the flat quarterly net earnings mainly to a higher effective tax rate (34.5% versus 27.6%) and higher interest expense, partly offset by higher non-fuel operating profit. Identical supermarket sales excluding fuel rose 3.6% in the quarter and 3.9% year to date, and the company stated that management increased the lower and upper ends of its 2012 diluted EPS guidance to a range of $2.35-$2.42. Balance sheet and cash flow items were steady. Total debt including capital leases and financing obligations was $8.1 billion, up $779 million from a year earlier, and the company had $360 million of commercial paper outstanding. Net cash provided by operating activities was $2.0 billion for the first two quarters of 2012, versus $2.2 billion a year earlier. Kroger repurchased $525 million of stock in the second quarter and $871 million year to date, and the Board declared a quarterly dividend of $0.15 per share on September 13, 2012, up from $0.115. The filing also discloses a contingent exposure in a Tax Court dispute involving the 1992 Ralphs transaction. The Tax Commissioner has appealed to the Ninth Circuit, and an adverse decision would require a cash payment of up to approximately $567 million including interest. Management stated that it does not believe any resulting liability would have a material adverse effect on its financial position, results of operations, or cash flows.

    Sep 18, 2012
  44. 2013-Q1

    Kroger Quarterly Report for Q2 Ended May 19, 2012

    The Kroger Co. reported first-quarter 2012 sales (16 weeks ended May 19, 2012) of $29,065 million, up from $27,461 million a year earlier, with net earnings attributable to The Kroger Co. of $439 million, or $0.78 per diluted share, compared with $432 million, or $0.70 per diluted share, in the prior-year quarter. The filing attributes the sales increase primarily to identical supermarket sales growth, higher average retail fuel prices and increased fuel gallon sales. Identical supermarket sales excluding fuel rose 4.2%, which management tied to product cost inflation, higher transaction counts, a larger average sale per shopping trip, more households shopping with Kroger, and exceptional pharmacy results. FIFO gross margin rate fell to 20.70% from 21.42%, while OG&A expenses declined as a percentage of sales to 15.36% from 15.79%. On the balance sheet, cash and temporary cash investments rose to $511 million from $188 million at January 28, 2012, following $846 million of long-term debt proceeds, which included $500 million of 3.40% senior notes due 2022 and $350 million of 5.00% senior notes due 2042, against $527 million of debt payments. Total debt including capital leases stood at $8.1 billion, and the company repurchased 14.6 million shares for $345 million during the quarter. Management raised the lower and upper ends of its fiscal 2012 guidance to $2.33-$2.40 in diluted earnings per share, citing the strength of first-quarter results. For investors, the filing shows steady earnings growth driven by identical sales, a lower effective tax rate of 34.5% versus 37.4%, and continued share buybacks. Pressures include lower gross margin from continued price investments, rising credit card fees and health care costs, and a pending Tax Court matter in which an adverse decision would require a cash payment of up to approximately $561 million including interest.

    Jun 26, 2012
  45. 2012-Q3

    Kroger Quarterly Report for Q3 Ended Nov 5, 2011

    The Kroger Co. reported third-quarter 2011 sales of $20.59 billion, up from $18.67 billion a year earlier, with three-quarter sales of $68.97 billion versus $62.17 billion. Net earnings attributable to The Kroger Co. were $196 million, or $0.33 per diluted share, compared with $202 million, or $0.32 per diluted share, in the prior-year quarter. Year-to-date net earnings rose to $909 million, or $1.50 per diluted share, from $838 million, or $1.30 per diluted share. The filing attributes the quarterly earnings decline mainly to a $50 million increase in the LIFO charge and a higher effective tax rate, partly offset by higher fuel and non-fuel operating profit. Fuel sales rose sharply, with the average retail fuel price up 28.1% in the quarter, while identical supermarket sales excluding fuel grew 5.0%. Share repurchases were a major driver of per-share results. The company invested $1.3 billion to repurchase 54.8 million shares in the first three quarters, and it repurchased 67 million shares over the past four quarters. Cash fell to $216 million from $825 million at fiscal year-end, mainly because of a $478 million senior note repayment and higher buybacks, partly offset by $330 million of commercial paper borrowings. Total debt was $7.7 billion at quarter end. Management raised its FY2011 guidance to $1.95-$2.00 of diluted EPS, excluding the expected pension contribution. A notable item for investors is a memorandum of understanding with 11 of 14 UFCW locals to consolidate four multi-employer pension funds. Kroger has committed to fund the new consolidated plan to 95% funded status by March 31, 2018, with a first payment due March 31, 2012. The company may fund about $650 million pre-tax ($413 million after tax) in the fourth quarter of 2011, which would reduce fourth-quarter net earnings by approximately $0.73 per diluted share.

    Dec 15, 2011
  46. 2012-Q2

    Kroger Quarterly Report for Q3 Ended Aug 13, 2011

    The Kroger Co. reported second-quarter 2011 results for the quarter ended August 13, 2011, with sales of $20.9 billion, up 11.5% from $18.8 billion a year earlier, and net earnings attributable to The Kroger Co. of $281 million, or $0.46 per diluted share, versus $262 million, or $0.41, in the prior-year quarter. The increase was driven primarily by strong retail fuel operations, the repurchase of stock over the past four quarters, and certain tax adjustments, partly offset by a decline in non-fuel operating profit. The average fuel gallon price rose 34.9% year over year, and identical supermarket sales excluding fuel grew 5.3%, which the company describes as its 31st consecutive quarter of positive identical supermarket sales growth. For the first two quarters, net earnings attributable to Kroger were $713 million, or $1.17 per diluted share, compared with $0.98 a year earlier. Kroger repurchased $803 million of stock year to date and paid dividends of $0.21 per share. The company reported $643 million of cash at quarter end and $6.9 billion of total debt excluding capital leases and financing obligations, and it repaid $478 million of 6.80% senior notes at maturity in the first quarter. Management reaffirmed 2011 guidance of $1.85 to $1.95 per diluted share, expecting results near the top of that range, and raised the low and high ends of its identical supermarket sales guidance. The filing also flags risks, including a pending Tax Court matter where an adverse decision would require a cash payment of up to approximately $536 million including interest, a California antitrust case that the Ninth Circuit affirmed in favor of the defendants, and labor negotiations, including a Teamsters contract that has expired while work continues without a contract. Management expects meaningful increases in multi-employer pension contributions over the next few years.

    Sep 16, 2011
  47. 2012-Q1

    Kroger Quarterly Report for Q2 Ended May 21, 2011

    The Kroger Co. reported first-quarter 2011 sales (16 weeks ended May 21, 2011) of $27.46 billion, up 11.0% from $24.74 billion a year earlier. The company attributed the increase to identical supermarket sales growth, higher average retail fuel prices (up 30.0% per gallon) and increased fuel gallon sales. Identical supermarket sales excluding fuel rose 4.6%. Net earnings attributable to The Kroger Co. were $432 million, or $0.70 per diluted share, compared with $374 million, or $0.58 per diluted share, a year earlier. Management cited productivity improvements and cost controls, partially offset by higher LIFO, credit card, health care and pension costs. Operating profit rose to $811 million from $723 million, and the effective tax rate was 37.4%, compared with 36.5% a year earlier. The company raised the lower and upper ends of its 2011 guidance. It now expects diluted earnings per share of $1.85 to $1.95, with results near the top of that range, and identical supermarket sales growth excluding fuel of 3.5% to 4.5%. The guidance reflects a higher estimated LIFO charge of $150 million. Kroger expects 2011 capital investments of $1.7 billion to $1.9 billion and interest expense of about $445 million. Kroger repurchased 23.1 million shares for $544 million in the quarter, and $603 million remained available under its repurchase programs at period end. Balance sheet and cash flow were broadly stable. Cash from operations was $1.2 billion, compared with $1.6 billion a year earlier, largely because of a smaller working capital contribution. Total debt was $7.4 billion, and cash and temporary cash investments fell to $431 million from $825 million at fiscal year-end, mainly due to share repurchases. The company had no borrowings under its $2 billion credit agreement at quarter end. A pending Tax Court matter could require a cash payment of up to approximately $527 million, including interest, if the outcome is adverse.

    Jun 23, 2011
  48. 2011-Q3

    Kroger Quarterly Report for Q3 Ended Nov 6, 2010

    The Kroger Co. reported third-quarter 2010 sales of $18.70 billion (18,698 million), up from $17.66 billion a year earlier, with net earnings attributable to The Kroger Co. of $202 million, or $0.32 per diluted share, compared with a net loss of $875 million, or $1.35 per diluted share, in the third quarter of 2009. That prior-year loss included non-cash asset impairment charges of $1.05 billion after tax, mainly a goodwill write-down at the Ralphs division. For the first three quarters of 2010, net earnings were $838 million, or $1.30 per diluted share, versus a net loss of $185 million, or $0.29 per diluted share, a year earlier. Management cited identical supermarket sales growth excluding fuel of 2.4% in the quarter, higher fuel prices and gallons sold, and a lower effective tax rate, and narrowed its 2010 guidance to net earnings of $1.65 to $1.78 per diluted share, aiming for the upper half of that range. Balance sheet and cash flow data were steady. Cash and temporary cash investments rose to $758 million from $424 million at fiscal year-end 2009, and net cash from operating activities was $2.53 billion for the first three quarters. Total debt was reduced through repayment of $500 million of 8.05% senior notes, partly offset by $300 million of 5.40% notes due 2040. The company repurchased $292 million of its stock in the first three quarters and paid $183 million in dividends. Capital expenditures for the period were $1.42 billion in cash payments, and 2010 capital investment guidance is $1.8 to $2.0 billion. Subsequent to the quarter, on November 8, 2010, Kroger entered into a new $2.0 billion unsecured revolving credit facility maturing May 15, 2014, replacing its $2.5 billion facility. The new agreement is not guaranteed by subsidiaries, so the subsidiary guarantees of the company's public debt were terminated. The company also disclosed a pending Tax Court case in which an adverse decision would require a cash payment of up to approximately $509 million including interest, and a Ninth Circuit ruling against a Mutual Strike Assistance Agreement, which management does not expect to be materially adverse.

    Dec 13, 2010
  49. 2011-Q2

    Kroger Quarterly Report for Q3 Ended Aug 14, 2010

    The Kroger Co. reported second-quarter 2010 results (12 weeks ended August 14, 2010) with sales of $18.80 billion, up from $17.73 billion a year earlier, and net earnings attributable to The Kroger Co. of $262 million, or $0.41 per diluted share, compared with $255 million, or $0.39 per diluted share, in the second quarter of 2009. For the first two quarters, net earnings were $636 million, or $0.98 per diluted share, versus $690 million, or $1.05 per diluted share, a year earlier. Management attributed the quarterly sales increase largely to identical supermarket sales growth excluding fuel of 2.7%, higher average retail fuel prices, and increased fuel gallons sold. The company cited strong retail fuel operations, lower interest expense and a lower effective tax rate as drivers of the quarterly earnings increase, partly offset by higher prior-year workers' compensation reserves. Year-to-date decline was attributed mainly to lower FIFO gross margins on non-fuel sales from continued price investments. Balance sheet and cash flow were stable. Cash and temporary cash investments rose to $1.04 billion from $424 million at January 30, 2010, and net cash provided by operating activities was $2.32 billion for the first two quarters. Capital expenditures were $952 million year to date, and the company repurchased 10.9 million shares for $228 million in the first two quarters. Total debt was $7.3 billion in long-term debt excluding capital leases, and no borrowings were outstanding under the $2.5 billion revolving credit facility. Management reaffirmed 2010 guidance of $1.60 to $1.80 in diluted EPS and identical supermarket sales growth excluding fuel of 2.0% to 3.0%. The filing also discusses legal matters. A Tax Court case over a 1992 transaction could require a cash payment of up to about $502 million, including interest, if decided adversely, with a decision expected within 12 months. The Ninth Circuit ruled on August 17, 2010 that a 2004-era strike assistance agreement violated the Sherman Act, and the matter was remanded to the district court; management does not expect a material adverse effect.

    Sep 22, 2010
  50. 2011-Q1

    Kroger Quarterly Report for Q2 Ended May 22, 2010

    The Kroger Co. reported first-quarter 2010 results for the 16-week period ended May 22, 2010. Sales rose to $24.76 billion from $22.79 billion, driven by identical supermarket sales increases, higher average retail fuel prices, increased fuel gallon sales, and some product cost inflation. The average price of a gallon of fuel was 39% higher than in the prior-year quarter. Net earnings attributable to The Kroger Co. fell to $374 million, or $0.58 per diluted share, from $435 million, or $0.66 per diluted share, as lower FIFO gross margins on non-fuel sales, driven by continued investments in lower customer prices, outweighed higher retail fuel margins. Identical supermarket sales without fuel increased 2.4%. Management confirmed its 2010 guidance of $1.60-$1.80 in net earnings per diluted share and said it is striving for results in the upper half of that range. The company expects identical supermarket sales growth excluding fuel of 2.0%-3.0% and capital expenditures of $1.9-$2.1 billion for 2010. Total debt declined to $7.5 billion from $7.9 billion a year earlier, and cash and temporary cash investments rose to $602 million. Shareowners' equity was $5.11 billion at quarter end. The filing also flags several risks. A pending Tax Court case over a 1992 Ralphs transaction could require a cash payment of up to approximately $496 million, including interest, if decided adversely. The company also expects meaningful increases in multi-employer pension plan contributions over the next several years, and it approved a new $500 million share repurchase program on June 24, 2010, to replace the existing $1 billion program, which had approximately $225 million remaining.

    Jun 28, 2010