Kroger expects a 2.25% boost in sales in fiscal 2020

on Mar 7, 2020
Updated: Mar 11, 2020
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  • Kroger expects a 2.25% boost in sales in fiscal 2020.
  • Kroger posts $28.89 billion in net quarterly sales.
  • Kroger makes 40 cents of earnings per share in Q4.

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Kroger’s financial performance in 2019 remained volatile with multiple ups and downs. The American retail company announced its performance results for the fourth quarter on Thursday that posted stronger net income than the analysts’ estimates. Following the earnings report, Kroger was seen trading higher in the stock market.

The retailer boasted $327 million in net income in the recent quarter that came significantly higher than $259 million that was printed in the same quarter last year. The company made 40 cents of earnings per share in the fourth quarter versus 32 cents in 2018’s Q4.

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Kroger Posts $28.89 Billion In Net Sales In The Fourth Quarter

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Kroger also revealed its sales at $28.89 billion in Q4 versus $28.2 billion that was recorded a year earlier. In its report on Thursday, the retailer also declared that it faced an impairment charge worth $174 million (non-cash) in the recent quarter that was attributed to its interest in Lucky’s Market that it divested.

If fuel and dispositions are excluded, Kroger’s Q4 sales rose by 2.3% while a 2% improvement in same-store sales was reported. On the digital sales front, the retailer registered a massive 22% growth from last year.

According to Kroger, its net income hit $1.65 billion in 2019 that translates to $2.05 of earnings per share (EPS). In fiscal 2018, however, its net income was noted much higher at $3.11 billion or $3.80 of earnings per share. Kroger’s full-year sales, as per Thursday’s data, came out at $122.2 billion. In the fourth quarter of 2018, its full-year sales were capped at a lower $121.8 billion instead.

Kroger’s Guidance For Fiscal 2020

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Kroger’s CEO William Rodney McMullen also accentuated $23 billion in sales from the company’s Our Brands while sales from its Simple Truth unit amounted to $2.5 billion in the fourth quarter. It will take another year for the company to launch its very first customer fulfillment center (fully functional) in Monroe, Ohio.

In its guidance for fiscal 2020, Kroger said that it now expects the sales to grow by 2.25% this year and forecast its EPS within the range of $2.30 per share to $2.40 per share.

At the time of writing, Kroger is trading around $32 per share in the stock market that marks just over 10% growth in 2020 so far. Its performance in 2019, on the other hand, remained close to flat on average with an annual gain of just 5%.

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