Kroger remains confident about closing its proposed merger with Albertsons after adjusted earnings for its second quarter slipped but still beat an analyst estimate, while revenues gained but came up short of a forecast.
Company net earnings were $466 million, or 64 cents per diluted share, versus a net loss of $180 million, or 25 cents per diluted share, in the year-prior quarter. Adjusted for one-time events, company net earnings were $681 million, or 93 cents per diluted share, versus $699 million, or 96 cents per diluted share, in the year-earlier period.
A Yahoo Finance-published analyst consensus estimate called for earnings per adjusted diluted share of 91 cents and revenues of $34.09 billion.
Without the effect of fuel price volatility, identical sales, a common supermarket metric similar to comparable sales, increased 1.2% in the quarter year over year. Kroger reported.
Net sales were $33.91 billion versus $33.85 billion in the year-before period. Operating profit was $815 million versus an operating loss of $479 million in the quarter a year previous, while adjusted operating profit was $984 million versus $989 million.
In introducing the financial results, Kroger chairman and CEO Rodney McMullen said, “Kroger achieved solid results in the second quarter demonstrating the strength and resiliency of our model. We are growing households and increasing customer visits by offering a compelling combination of affordable prices and personalized promotions on great quality products, all through a unique seamless experience. We appreciate our associates for their focus on full, fresh and friendly, which elevates the customer experience. Our long-term model is to consistently invest to lower prices so more customers shop with us, which in turn fuels our alternative profit businesses and drives greater efficiencies This flywheel enables Kroger to deliver exceptional value for customers and investing in our associates, and by doing so, we are well-positioned to generate attractive and sustainable returns for shareholders.”
He added, in addressing the ongoing company initiative to acquire Albertsons Cos., “As we near the close of the FTC’s preliminary injunction hearing, we are confident in the facts and the strength of our position. The food industry has always been competitive and will continue to be after this merger. We are committed to closing this merger because bringing Kroger and Albertsons together will provide meaningful and measurable benefits – lower prices, secure jobs and expanded access to fresh, affordable food – for customers, associates and communities across the country.”
