CINCINNATI, OH – Kroger just keeps steaming ahead with the release of a very strong Q2 financial report, highlighted by net earnings of $347 million, or $0.70 per diluted share, and identical supermarket sales growth, without fuel, of 4.8%. During the same period last year, that figure was $317 million, or $0.60 per diluted share. The release of this report impressively marks the 43rd consecutive quarter of positive identical supermarket sales growth.

With results like these, Kroger's CEO Rodney McMullen was understandably proud of his company's performance.

"We are winning with customers because we offer a full range of advantages including a great overall shopping experience, excellent customer service, a complete assortment of both national and corporate brand products, and everyday low prices and promotional offerings," McMullen said. "As we improve our connection with customers, we are also executing our growth plan and delivering on our key performance indicators -- all of which is fueling strong financial results for shareholders."

Other highlights from the report include:

• An increase in total sales of 11.6% to $25.3 billion compared to $22.7 billion for the same period last year. According to Reuters, analysts had only expected $24.92 billion in total sales.
• Total sales, excluding fuel, increased 12.4%.
• Capital investments, excluding mergers, acquisitions, and purchases of leased facilities, of $672 million, compared to $507 million.
• An increase in forward looking guidance to a range of $3.22 to $3.28 per diluted share for fiscal 2014 from an original guidance range of $3.19 to $3.27 per diluted share.
• An increase in forward looking guidance for identical supermarket sales growth to 3.5% to 4.25% for fiscal 2014 from a previous estimate of 3.0% to 4.0%.

"We are accelerating core business growth and investing to create unique competitive positioning for today and the future," McMullen said. "Based on our strong quarter results, we raised our net earnings per diluted share and identical supermarket sales growth guidance for the year.  We are well on our way to achieving a 13 – 15% net-earnings-per-diluted-share growth rate, including net accretion to earnings from the Harris Teeter merger, plus the dividend for fiscal 2014."

With the history of success Kroger has compiled over the past several years, I certainly wouldn't be one to bet against McMullen making good on this statement.

As of 11:00am PST, Kroger's stock is currently trading at $52.00 per share, a 0.25% increase during the day's trading activities.

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