As it acknowledged digital as increasingly important part of the operation, The Kroger Co. posted first-quarter results lined up against exceptional results in the coronavirus-stricken year-prior period, and it pointed to the quarter the year before that to provide an indication of the company’s progress.
Wall Street offered an earnings estimate for the quarter that fell well short of Kroger’s actual results.
Company earnings came in at $140 million, or 18 cents per diluted share, versus $1.21 billion, or $1.52 per diluted share, in the quarter a year earlier.
Adjusted earnings per share were $1.19 versus $1.22 in the 2020 period. A MarketBeat-published analyst average estimate for adjusted earnings per share in the quarter was 99 cents.
Kroger sales for the quarter were $41.3 billion versus $41.55 billion in the year-previous period, the company reported. Operating profit was $805 million versus $1.33 billion in the year-before period while adjusted operating profit was $1.38 billion versus $1.45 billion in the year-past quarter.
Identical sales were down 4.1% versus up 19% in the 2020 period, however they were up 14.9% versus the 2019 quarter, Kroger pointed out. Operating profit slipped 5.5% on a two-year basis versus the 2019 period but advanced 19.9% on an adjusted compound annual growth rate basis over the two years.
Digital sales grew 16% in the quarter year over year, Kroger noted, and 108% on a two-year stack basis.
Kroger chairman and CEO Rodney McMullen said, “Kroger is even better positioned to connect with our customers than we were prior to the pandemic as a result of our relentless focus on leading with fresh and accelerating with digital… Customers are responding to the investments we have made in digital, as evidenced by our triple-digit growth in digital sales since the beginning of 2019.”
Kroger continues to expand its newly launched Ocado-powered web-enabled delivery system, which uses AI and robotic product picking to drive efficiency in its customer fulfillment centers. The first Florida CFC has launched in the town of Groveland and serves Tampa Bay and Hillsborough counties, according to the company.
