Kroger Q2 Sales, Earnings Take Off

Kroger has gained in the second quarter as consumers have continued to focus more on food at home during the COVID-19 pandemic.

Company net earnings were $819 million, or $1.03 per diluted share, versus $297 million, or 37 cents per diluted share, in the quarter a year previous, Kroger stated. Company earnings adjusted for one-time events were $581 million, or 73 cents per diluted share, versus $357 million, or 44 cents per diluted share, in the period a year before.

Kroger exceeded a MarketBeat-published analyst consensus estimate for second quarter adjusted diluted earnings per share, which came in at 54 cents.

Without fuel considerations, identical store sales increased by 14.6% in the period year over year, Kroger noted. Digital sales gained 127%.

Sales for the quarter were $30.49 billion compared with $28.17 billion in the period a year earlier. Operating profit was $820 million versus $559 million in the year-prior quarter. Adjusted operating profit was $894 million versus $626 million in the year-past period.

Kroger chairman and CEO, Rodney McMullen, said, “Customers are at the center of everything we do and, as a result, we are growing market share. Kroger’s strong digital business is a key contributor to this growth, as the investments made to expand our digital ecosystem are resonating with customers. Our results continue to show that Kroger is a trusted brand and our customers choose to shop with us because they value the product quality and freshness, convenience, and digital offerings that we provide. We delivered extremely strong results in the second quarter and expect to deliver consistently attractive total shareholder returns. We are more certain than ever that the strategic choices and investments made through Restock Kroger to execute against our competitive moats, fresh, our brands, personalization and seamless, have positioned Kroger to meet the moment, especially as customers are rediscovering their passion for food at home.”