Kroger Earnings Decline In Q2

As Kroger continues to expand its online ordering services, the supermarket retailer grew in the second quarter, reporting a slight rise in sales and comps, although net earnings declined.

For the second quarter ended August 13, The Kroger Co. posted company net earnings of $383 million, or 40 cents per diluted share, versus $433 million, or 44 cents per diluted share, in the period a year previous.

Adjusted net earnings were $454 million, or 47 cents per diluted share, Kroger reported. Earnings for the fiscal 2015 period did not include adjusted results. Adjusted earnings per diluted share beat a Zacks Investment Research analyst average estimate of 45 cents.

Identical supermarket sales, excluding the effect of fuel price volatility, were up 1.7% versus the quarter a year earlier, Kroger noted. Overall sales were $26.57 billion, compared with $25.54 billion in the prior-year period. Operating profit was $665 million versus $774 million in the period a year earlier, according to Kroger.

Notable highlights in the quarter include the supermarket retailer’s expansion of its ClickList and ExpressLane online ordering services in almost 400 locations.

Kroger operates 2,781 stores in 35 states under a range of retail banners.