Kroger Co., which owns also Ralphs, Fry's and other chains, 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 between 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.
Kroger and other supermarket companies are trying to adapt to a shifting industry. Shoppers are increasingly getting groceries at big-box retailers like Target, drugstores and dollar stores that have expanded their food sections. Specialty chains such as Whole Foods are playing a greater role, too. The organic grocer said in July that its sales rose 7.5 percent at locations open at least a year in its most recent quarter.
The company said it's still spending about $1.5 billion on health care each year, and that the figure is expected to increase. 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. The stock added $1.02, or nearly 3 percent, to $38.69. Shares have traded between $22.90 and $39.98 in the past 52 weeks, and are up about 45 percent since the start of the year.
Looking ahead, Kroger now expects the sales figure to increase between 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.
Kroger and other supermarket companies are trying to adapt to a shifting industry. Shoppers are increasingly getting groceries at big-box retailers like Target, drugstores and dollar stores that have expanded their food sections. Specialty chains such as Whole Foods are playing a greater role, too. The organic grocer said in July that its sales rose 7.5 percent at locations open at least a year in its most recent quarter.
The company said it's still spending about $1.5 billion on health care each year, and that the figure is expected to increase. 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. The stock added $1.02, or nearly 3 percent, to $38.69. Shares have traded between $22.90 and $39.98 in the past 52 weeks, and are up about 45 percent since the start of the year.
