Kroger’s profit increased by 4% in its first fiscal quarter of the year and the addition of Harris-Teeter will help the company grow further. The retailer raised its net earnings and same-store sales forecast for the fiscal year.
Kroger’s decision to become more cost-conscious to consumers has helped it grow during the recession. The company also implemented a loyalty rewards program that has made shopping at Kroger more affordable than other major retailers.
Total sales increased 9.9% to $32.96 billion in the first quarter and same-store sales — excluding fuel — increased 4.1%.
Kroger CEO Rodney McMullen spoke of the company’s recent success and future plans:
Kroger associates continue to enhance our connection with all customers and achieve our key performance measures, which are allowing us to achieve our growth strategy and create shareholder value. Our strong first quarter results set us up to deliver a 12%-15% net earnings growth rate for the year, partly due to the benefit of Harris Teeter.
Kroger stock is up about 5.25% Thursday afternoon. KR is up 25.8% YTD.
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