Kroger Announces Third Quarter 2022 Results; Rodney McMullen and Gary Millerchip Comment
CINCINNATI, OH - Kroger is one grocer that has remained in the spotlight as we continue to track its pending merger agreement with Albertsons. Granting us a closer look at the company’s strategies and financial performance for the third quarter of fiscal 2022, the retailer has noted that its total company sales reached $34.2 billion in the third quarter. This represents a $2.3 billion boost compared to the $31.9 billion reported for the same period last year.
"Kroger achieved strong results in the third quarter as we continue to execute our Leading with Fresh and Accelerating with Digital strategy. Our associates are doing an outstanding job delivering a full, fresh, and friendly experience across our seamless store and digital ecosystem,” said Chairman and Chief Executive Officer Rodney McMullen. “Kroger's value proposition, which includes providing great quality, fresh products at affordable prices, data-driven promotions, trusted Our Brands products, and an industry-leading fuel rewards program, is resonating with shoppers and driving increased customer loyalty. This quarter demonstrates the strength of our approach to growing our business. By delivering for our customers, investing in our associates, and supporting our communities, we are creating attractive and sustainable total returns for our shareholders."
Highlights from Kroger’s third quarter report include:
- Identical Sales without fuel increased 6.9 percent
- Operating Profit of $841 million; Adjusted FIFO Operating Profit of $1,094 million
- EPS of $0.55; Adjusted EPS of $0.88
- Company is executing its go-to-market strategy to deliver value for customers
- Digital sales grew 10 percent
- Fresh Produce Initiative accelerated with a total of 1,252 stores certified, driving higher identical sales
Chief Financial Officer Gary Millerchip also commented on the results.
"Kroger's focus on delivering value for customers and our disciplined approach to managing costs in an inflationary environment led to another quarter of strong results,” added Millerchip. “Our consistent execution of our go-to-market strategy continues to build momentum in our business results and gives us the confidence to raise our full-year guidance...The resiliency of Kroger's value creation model positions us well to navigate different operating environments, and as we look forward, we remain confident in our ability to deliver attractive and sustainable total shareholder returns for investors."
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