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Kroger Q1 2016 Earnings Growth Soars; Pushes Up Stock Price

Kroger Q1 2016 Earnings Growth Soars; Pushes Up Stock Price

Thursday, June 16th, 2016

Now at its fiftieth consecutive quarter of positive identical supermarket sales growth, Kroger has announced a Q1 2016 financial report that shows earnings have risen ten percent, now at $680 million, up from $619 million in the same period last year. Each diluted share now comes in at $0.70, boosting the company’s stock to hit 93 cents, a 2.6 percent jump to $36.64.

Rodney McMullen, Chairman and Chief Executive Officer, Kroger Co.

"Fifty consecutive quarters of positive identical supermarket sales growth, excluding fuel, is extraordinary,” shared Chairman and CEO Rodney McMullen. “Our associates work tirelessly to produce these consistently remarkable results. We've been through all kinds of business cycles during the last 50 quarters, and we've demonstrated time and again that regardless of the environment, you can count on Kroger to continue executing our strategy, investing in growth and creating value for our customers and shareholders."

Photo Source: Google Finance

This new jump signals a turnaround for Kroger's stock in recent months. Since the beginning of 2016, pricing had fallen 15 percent, closing on Wednesday at $35.71.

Other highlights from Kroger’s Q1 2016 financial report include:

  • Total sales increased 4.7% to $34.6 billion, up from $33.1 billion last year
  • FIFO gross margin was 23.0% of sales for the first quarter
  • Total operating expenses excluding fuel and Roundy's decreased 4 basis points as a percent of sales compared to last year
  • Now offers ClickList and ExpressLane online ordering services in 25 markets

In the company's Q4 2015 financial report, Kroger had risen its capital expenditure budget by 24 to 33 percent, aiming to hit between $4.1 billion and $4.4 billion, with McMullen later explaining that a critical part of his strategy for success is adding or expanding stores within the company's current 35-state footprint.

It looks as if Kroger’s pathway towards massive growth will not be hindered any time soon, so keep attune to the latest.