breaking news

Springfield woman accused of not treating 3-month-old with broken leg

Kroger 2Q profit rises, helped by lower charge


CINCINNATI (AP) — Kroger reported a higher net income for its fiscal second-quarter as the nation’s largest traditional supermarket operator booked lower charges and worked to build shopper loyalty with improved offerings.

The Cincinnati-based company lifted the low end of its fiscal 2013 outlook for a key sales measurement. Shares edged higher in Thursday morning trading.

Kroger Co. said sales rose 3.3 percent at stores open at least a year during the quarter. The rise was helped by an increase in the number of “loyal” households, which Kroger defines using factors such as how much they spend and how often they visit.

Looking ahead, Kroger now expects the sales figure to increase betwee 3 percent and 3.5 percent for fiscal 2013, excluding fuel. Its previous projection was for an increase in 2.5 to 3.5 percent. Wall Street was forecasting a 3.3 percent gain.

The metric is an important gauge because it strips out the impact of newly opened and closed locations.

For the quarter ended Aug. 17, Kroger earned $317 million, or 60 cents per share. That compared with $279 million, or 51 cents per share, in the 2012 second quarter.

The results were just above the 59 cents per share that analysts polled by FactSet expected, on average.

The latest quarter included an accounting-related charge of $13 million, compared with a $35 million charge in the prior-year period.

Revenue rose 5 percent to $22.72 billion from $21.73 billion, topping Wall Street’s estimate of $22.69 billion.

Kroger still expects full-year earnings in a range of $2.73 to $2.80 per share. Analysts predict earnings of $2.80 per share.


Reader Comments ...


Next Up in Business

WATCH: Amazon’s first ‘store of the future’ opens today
WATCH: Amazon’s first ‘store of the future’ opens today

Amazon’s first store, which has no checkout lanes, opened today in Seattle. The new concept Amazon Go will give consumers “the world’s most advanced shopping technology so you never have to wait in line,” according to the online retail giant. Some industry experts are calling the concept the future of brick-and-mortar retail...
Court to look at ‘antiquated’ sales tax rules for online retailers
Court to look at ‘antiquated’ sales tax rules for online retailers

The U.S. Supreme Court is going to reconsider a pressing issue for national and state businesses: Should online retailers be required to collect sales taxes just like local brick-and-mortar stores? The court said it will hear a case from South Dakota, where state officials would like to see online retailers that do at least $100,000 in business every...
Walmart introduces meal kits with no subscription
Walmart introduces meal kits with no subscription

Walmart is now selling meal kits that require no subscription for customers. Walmart has joined the growing number of grocery retailers offering meal kits in December. Walmart is now touting that its meal kits are hassle-free, and it doesn’t require a subscription like competitor services like Blue Apron. Walmart meal kits come in several brands...
Lending Tree: Dayton home market isn’t so competitive
Lending Tree: Dayton home market isn’t so competitive

The Dayton housing market is one of the least competitive in the country, at least among buyers who make mortgage loan requests through the Lending Tree online marketplace, the company said. In a national ranking, Dayton ranks relatively low for factors Lending Tree deems indicative of a competitive housing market. Prospective buyers in this area have...
Kroger reportedly looking to partner with Overstock.com
Kroger reportedly looking to partner with Overstock.com

Kroger is considering teaming up with Overstock.com Inc. in an effort to compete with online retailers. The New York Post reported the Cincinnati-based grocer may be eyeing a deal with Overstock.com, according to sources. Overstock CEO Patrick Byrne said last year that he plans to sell or reorganize the e-commerce business to focus on blockchain technology...
More Stories