Kroger serves up tasty 4Q results

CINCINNATI Kroger reported net earnings totaled $349.2 million, or 53 cents per diluted share for the fourth quarter of fiscal 2008 ended Jan. 31, compared with net earnings of $322.9 million, or 48 cents per diluted share, in the same period last year.

Total sales in the fourth quarter were $17.3 billion compared with $17.2 billion for the same period last year. Excluding fuel sales at the company's supermarket fuel centers and convenience stores, total sales increased 4.4% over the prior year. Identical-supermarket sales, excluding fuel, increased 3.8% over the same period last year.

"Kroger offered real value to customers when they needed it most through lower prices, led by our high-quality Kroger brands. The Kroger team did a remarkable job during the quarter and throughout the entire year of consistently delivering results in an increasingly difficult economic environment," said David Dillon, Kroger chairman and chief executive officer.

For fiscal year 2008, total sales increased 8.2% to $76 billion over the same period last year. Identical-supermarket sales, excluding fuel, rose 5% compared with the same period a year ago.

Net earnings for fiscal year 2008 were $1.25 billion, or $1.90 per diluted share. Net earnings in fiscal 2007 were $1.18 billion, or $1.69 per diluted share.

Kroger is forecasting identical-supermarket sales and earnings per share growth in 2009. The company now expects full-year identical supermarket sales growth, excluding fuel, of 3% to 4% for fiscal 2009. This guidance reflects the company's outlook for product cost inflation of 1% to 2% compared to its earlier forecast of 2% to 3%.

Kroger's stock has been on a steady climb since posting its fourth-quarter and full-year results. As of the morning of March 10, the stock has been hovering over $21, compared with its previous close of $19.46.