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Kroger Releases First Quarter 2022 Results; Rodney McMullen and Gary Millerchip Discuss

Kroger Releases First Quarter 2022 Results; Rodney McMullen and Gary Millerchip Discuss

Thursday, June 23rd, 2022

Fresh-and-center is a strategy The Kroger Co. adapted recently when it began utilizing Leading with Fresh and Accelerating with Digital initiatives. It looks like this stratagem has paid off as the retailer revealed total company sales increased by $3.3 billion within its Q1 2022 results.

Rodney McMullen, Chief Executive Officer, Kroger“We are incredibly proud of our associates who continue to put the customer at the center of everything we do,” said Rodney McMullen, Chief Executive Officer. “Our team is doing an outstanding job managing costs in an inflationary environment, which is allowing us to continue to invest in our associates while providing our customers the freshest food at affordable prices when and where they need it…Looking ahead, we are well-positioned to continue delivering for our customers, investing in our associates, and driving sustainable returns for shareholders.”

In the release, Kroger revealed its total company sales had increased from $41.3 billion in the first quarter of 2021 to $44.6 billion in 2022. This resulted in a 3.8 percent jump from the year prior, excluding fuel sales.

Kroger has wielded its Leading with Fresh and Accelerating with Digital initiatives to increase its total company sales by $3.3 billion

Other key takeaways Kroger disclosed include:

  • Identical Sales without fuel increased 4.1 percent
  • Operating Profit of $1.5 billion and Adjusted FIFO Operating Profit of $1.6 billion
  • EPS of $0.90
  • Fresh Department identical sales increased 5.2 percent
  • Digitally engaged households grew by more than half a million and digital coupon downloads increased 11 percent
  • Accelerated End-to-End Fresh Produce initiative with 355 new stores certified, driving higher fresh sales during the quarter

Gary Millerchip, Chief Financial Officer, Kroger“Our relentless focus on executing our strategy and sustained food at home trends led to a strong first quarter. The Kroger team is effectively navigating a dynamic retail environment. Our diverse and resilient business model gives us confidence to raise our full-year guidance,” commented Gary Millerchip, Chief Financial Officer. “We now expect identical sales without fuel to be in the range of 2.5 percent to 3.5 percent, adjusted FIFO operating profit of $4.3 billion to $4.4 billion, and adjusted net earnings per diluted share to be in the range of $3.85 to $3.95. We remain confident in our ability to deliver sustainable earnings growth and total shareholder returns of 8-11 percent over time.”

Click here to read the full results.

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