The Herald of Everett, Washington
Customer service  |  Subscribe   |   Log in or sign up   |   Advertising information   |   Contact us

The top local business stories in your email

Contact Us:

Josh O'Connor
Phone: 425-339-3007

Maureen Bozlinski
General Sales Manager
Phone: 425-339-3445
Fax: 425-339-3049

Jim Davis
Phone: 425-339-3097

Site address:
1800 41st Street, S-300,
Everett, WA 98203

Mailing address:
P.O. Box 930
Everett, WA 98206

HBJ RSS feeds

Kroger's profits meet expectations

SHARE: facebook Twitter icon Linkedin icon Google+ icon Email icon |  PRINTER-FRIENDLY  |  COMMENTS
Associated Press
CINCINNATI -- Kroger's net income fell nearly 6 percent during the third quarter, partly on the costs from the pending acquisition of Harris Teeter.
Kroger and other supermarkets are trying to adapt to a shifting industry as shoppers increasingly buy groceries at big-box retailers, drugstores and dollar stores with growing food sections.
The company is bolstering its appeal across a broader spectrum, through its acquisition of upscale food retailer Harris Teeter, and an expanded loyalty program for customers sticking to a tighter budget. In Washington state, Kroger operates Fred Meyer stores and QFC.
The nation's largest traditional supermarket said Thursday that its net income fell to $299 million, or 57 cents per share. That compares with net income of $317 million, or 60 cents per share a year ago. Excluding costs related to the acquisition and a tax benefit, net income totaled 53 cents per share, matching expectations. A year ago, the company benefited from a settlement with credit card companies. Excluding that and other items, year-ago revenue totaled 46 cents per share.
Revenue rose 3 percent to $22.51 billion from $21.81 billion. Analysts expected $22.72 billion.
Kroger Co., which owns also Ralphs, Fry's and other chains, said sales rose 3.5 percent at stores open at least a year. That's a key measure of a retailer's financial health because it excludes the volatility from stores that open or close during the period.
The company stuck to its per-share earnings expectations of $2.73 to $2.80 for the year. Analysts expect $2.80 per share.
Shares edged down 55 cents to $40.96 in morning trading, with stocks on major U.S. markets moving mostly lower. The stock is up 63 percent since the beginning of the year.
Story tags » RetailFood



Share your comments: Log in using your HeraldNet account or your Facebook, Twitter or Disqus profile. Comments that violate the rules are subject to removal. Please see our terms of use. Please note that you must verify your email address for your comments to appear.

You are logged in using your HeraldNet ID. Click here to update your profile. | Log out.

Our new comment system is not supported in IE 7. Please upgrade your browser here.

comments powered by Disqus

Market roundup