Kroger reports a fiscal 2016 sales lift of 5%

CINCINNATI — Kroger on Thursday reported net earnings of $0.53 per diluted share and a decline in identical supermarket sales, without fuel, of 0.7% for the fourth quarter ended Jan. 28.  For the fiscal year, net earnings were $2.05 per diluted share and identical supermarket sales growth, without fuel, was 1%.  



Total sales for the quarter increased 5.5% to $27.6 billion. Recent mergers with Roundy's and ModernHEALTH contributed to this growth. For the year, total sales increased 5% to $115.3 billion in 2016.  Excluding fuel, total sales increased 6.7% in 2016 compared to 2015.



"True to our history, we will continue making proactive investments in our 'Customer 1st Strategy' to maintain our strong competitive position," stated Rodney McMullen, chairman and CEO, Kroger. "We are lowering costs to invest those savings in our people, our business and technology. This approach will enable us to deliver on our long-term net earnings per diluted share growth rate target of 8% – 11%, plus an increasing dividend, as it has in the past."



Looking to 2017, Kroger anticipates identical supermarket sales, excluding fuel, to range from flat to 1% growth. The company expects net earnings to range from $2.21 to $2.25 per diluted share.



Kroger expects the operating environment in the first half of 2017 to be similar to the second half of 2016. The company's results in the second half of 2017 are expected to show improvement as the company cycles the previous year.