Kroger 1Q sales up 11.5%

CINCINNATI Kroger reported total sales increased 11.5% to $23.1 billion for the first quarter ended May 24. Identical-supermarket sales increased 9.2% with fuel and 5.8% without fuel.

Net earnings in the first quarter totaled $386 million, or 58 cents per diluted share. Net earnings in the same period last year were $336.6 million, or 47 cents per diluted share.

"Our strategy positions us well to deliver consistent results and make investments for our future. Kroger continues to help customers stretch their budgets in a number of ways, including lower prices and our expanded generic drug and gas discount programs," said David Dillon, Kroger chairman and ceo. "Through these kinds of price reductions, our customers are saving $1 billion annually."

Based on the strength of its first quarter results, the company raised its identical sales and earnings guidance for fiscal 2008. Kroger now expects identical sales growth of 4% to 5.5%, excluding fuel, for fiscal 2008. Previous guidance was 3% to 5%.

For earnings, Kroger now anticipates earnings of $1.85 to $1.90 per diluted share. The company's original guidance was $1.83 to $1.90 per diluted share.