Supermarket chain Kroger reported an 11% increase in sales (including fuel) to $27.5bn (£17bn) for its first quarter ended May 21. Excluding fuel, sales increased by 4.8% over the same period last year. A 4.6% increase in like-for-like sales together with cost savings boosted net profit 15.6% to $432.3m (£267.4m).
The company drew more frequent shoppers through loyalty rewards as the price of food and fuel rose. The company estimated that price rises, excluding fuel, reached 3.5% in total and 2.1% in the grocery sector, excluding milk.
Kroger said it expects the trend to continue and is passing on cost increases from suppliers to its customers. The company has raised its full-year earnings guidance.
No comments yet