US-based retail chain Kroger has reported $466m net earnings attributable to the company in the second quarter (Q2) of 2024 (FY24), compared to a net loss of $180m in Q2 FY23.
Its earnings per diluted share were $0.64 against a net loss per diluted share of $0.25 recorded in the same quarter of the previous year.
Total sales in the quarter were $33.91bn, increasing slightly from $33.85bn in Q2 FY23.
The retailer’s sales, excluding fuel, increased by 1.3% and its identical sales without fuel increased by 1.2% compared to the same period of the previous year.
Digital sales of Kroger grew 11% in Q2 FY24, with delivery sales increasing by 17% and e-commerce households up 14% from Q2 FY23.
Kroger recorded an operating profit of $815m in Q2 FY24, compared to an operating loss of $479m in Q2 FY23.
The retailer’s gross margin was 22.6% of sales for the second quarter ending 17 August 2024.
Kroger chairman and CEO Rodney McMullen said: "Kroger achieved solid results in the second quarter, demonstrating the strength and resiliency of our model.
“We are growing households and increasing customer visits by offering a compelling combination of affordable prices and personalised promotions on great quality products, all through a unique seamless experience. We appreciate our associates for their focus on full, fresh and friendly, which elevates the customer experience.”
In the year to September 2024, the retailer’s sales were $79.18bn, compared with $79.01bn in FY23.
Kroger’s operating profit increased from $991m in the first half (H1) of FY23 to $2.10bn in H1 FY24.
Net earnings attributable to the company were $1.41bn over the first half.
The company updated its full-year 2024 guidance and now expects identical sales without fuel of between 0.75% and 1.75% and capital expenditures of $3.6bn to $3.8bn.
It reaffirmed its adjusted net earnings per diluted share guidance of between $4.30 and $4.50 and adjusted first-in-first-out operating profit guidance in the range of $4.6bn to $4.8bn.
In August 2024, Kroger prepared to issue up to $10bn in corporate bonds as it sought to finance its proposed acquisition of Albertsons, as reported by Bloomberg.
