Kroger's Q1 income falls 14%
Cincinnati Kroger said Thursday that its first-quarter net income fell 14% as its costs rose faster than its revenue.
Net income fell 14% to $373.7 million from $435.1 million a year earlier, while same-store sales rose 2.4%, excluding gas sales.
Revenue rose 9% to $24.76 billion from $22.79 billion, led by gasoline sales. Excluding gasoline, revenue rose 3%.
Higher healthcare and pension costs and credit-card fees offset the sales improvement.
Analysts also have been anticipating added pressure on Kroger as Wal-Mart Stores has recently become more aggressive about cutting its prices on food to pull customers from Kroger and other traditional grocers.
Kroger has implemented price-cutting and promotions in response to rising competition.