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CINCINNATI — Kroger Co. on Thursday said third quarter earnings jumped 21% from a year earlier as it continued to take market share from competitors. The supermarket chain operator raised its earnings guidance for the year.
Kroger Co. on Thursday said third quarter earnings jumped 21% from a year earlier as it continued to take market share from competitors. The supermarket chain operator raised its earnings guidance for the year.
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"Our financial results were driven by strong sales and core business performance, and were helped by higher fuel margins," noted chief executive officer Rodney McMullen.
Kroger posted a profit of $362 million, or 73 cents a share, up from $299 million, or 57 cents a share, a year earlier. Excluding a tax benefit and other items, earnings rose to 69 cents from 53 cents.
Same-store sales climbed 5.6%, excluding fuel, in the three months through November 8. It was the 44th consecutive quarter that the company has notched same-store sales growth.
For the fourth quarter, the company expects identical-supermarket sales growth, excluding fuel, of between 4% and 5%.
Total sales in the third quarter rose 11.2% to $25 billion. Excluding fuel, sales gained 13.7% from a year ago, Kroger added.
FIFO gross margin was 21.2% of sales in the period, Kroger noted. Excluding retail fuel operations, FIFO gross margin decreased 2 basis points from the year earlier.
"Kroger continues to deliver consistently remarkable results. We expect to exceed our long-term earnings-per-share growth rate for fiscal 2014," McMullen noted.
Kroger raised and narrowed its adjusted net earnings per diluted share guidance for fiscal 2014 to a range of $3.32 to $3.36, from $3.22 to $3.28.
Kroger noted that it invested $29 million in the third quarter to repurchase shares. Over the past four quarters, the company has allocated $1.8 billion to share buybacks and shareholder dividends.
Kroger shares were up 3% to $60.42 in early morning trading in New York.
