Kroger Reports on Q1 FY2019

06/20/2019

In a press release dated June 20th The Kroger Company (KR) announced results for the 1st Quarter of Fiscal 2019 ending May 25th

The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as $ x 1,000 except EPS)

1st Quarter Ending

May 25th 2019

May 26th 2018

Difference (%)

Sales:

$37,251,000

$37,722,000

-1.3

Gross profit:

$8,268,000

$8,308,000

-0.5

Operating income:

$901,000

$1,029,000

-12.4

Pre-tax Income

Net Income

$763,0001

$772,000

$2,634,0002

$2,026,000

-71.0

-61.9

Diluted earnings per share:

$0.95

$2.37

-59.9

Gross Margin (%)

22.2

22.0

+0.9

Operating Margin (%)

2.4

2.7

-11.1

Profit Margin (%)

2.1

5.3

-60.3

Long-term Debt:

$12,016,000

$12,059,000

-0.3

12 Months Trailing:

     

Return on Assets (%)

4.4

   

Return on Equity (%)

41.8

   

Operating Margin (%)

2.2

   

Profit Margin (%)

2.6

   

Total Assets

$44,319,000

$36,561,000

+21.2

Market Capitalization

$18,480,000

   

Notes:

  1. Includes $106 million revenue from Ocado investment
  2. Includes non-recurring $1,771 million from sale of assets and businesses

52-Week Range in Share Price: $22.43 to $ 32.74

Market Close post release Thursday 20th $23.14 (-2.1 percent)

Forward P/E 9.7 Beta 1.0

Same store sales growth excluding fuel for Q1 2019 was +1.5 percent. Growth in digital sales +42 percent

In commenting on results Chairman and CEO Rodney McMullen stated "Because the retail industry is constantly transforming, we proactively launched Restock Kroger to deliver for our customers and shareholders. It all starts with our customer obsession, which is why Kroger is assembling a platform to deliver anything, anytime, anywhere.

We are building momentum in the second year of Restock Kroger, which is off to a solid start. The entire company is focused on redefining the grocery customer experience, improved upon by exciting partnerships that will create value. We are on track to generate the free cash flow and incremental adjusted FIFO operating profit that we committed to in 2019 as part of Restock Kroger. We are confident in our ability to deliver on our plans for the year and our long-term vision to serve America through food inspiration and uplift."

Company guidance for FY 2019 included EPS in the range of $2.15 to $2.25, Operating profit range of $2.9 to $3.0 billion. Capital expenditure of $3 billion.






















































































































































































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