Egg Industry News and Commentary

  —  Jun 19

 
KROGER Reports on Q1 of FY 2017

    

In a press release dated June 15th Kroger Corporation (KR) announced results for the 1st Quarter of Fiscal 2017 ending May 20th 2017.

The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as $ x 1,000 except EPS)

  

 Quarter Ending May 20th/21st

2017

2016

Difference (%)

Sales:

$36,285,000

$34,604,000

+4.9

Gross profit:

$8,004,000

$7,935,000

+0.9

Operating income:             

$622,000

$1,200,000

-48.2

Net Income

 

            $303,000

$696,000

-56.5

Diluted earnings per share:

$0.32

$0.71

-54.9 

Gross Margin (%)

22.1

22.9  

+3.4

Operating Margin (%)

1.7

3.5

-51.4

Profit Margin (%)

0.8

2.0

-60.0

Long-term Debt:

$11,590,000

     $9,710,000

        +19.4

12 Months Trailing:

 

 

 

           Return on Assets    (%)

6.2

 

 

           Return on Equity    (%)

29.9

 

 

           Operating Margin   (%)

3.0

 

 

           Profit Margin          (%)

1.7

 

 

Total Assets

$35,799,000

   $33,801,000

        +5.9

Market Capitalization

$20,300,000

 

          

 

52-Week Range in Share Price:          $20.46   to       $37.97

Market close pre-release 14th, $30.27; Close 16th post-release, $24.56;

                                           Close 17th post Amazon-WFM announcement, $22.20.  

Forward P/E: 9.91

 

Chairman and CEO Rodney McMullen stated "We remain focused on our strategy. This will make a difference for our customers and create value for our shareholders. We are running the business with an eye toward where the customer is going. Customers tell us they want to connect with us in multiple ways with the help of friendly associates to easily provide meals to their families at prices that enable them to stretch their budgets. We are committed to providing that experience, and we will not lose on price.

"We are driving our strategy of lowering costs to reinvest in ways that provide the right value to our customers. We're pleased that identical supermarket sales in the last nine weeks of the first quarter were positive, and that has continued in the second quarter to date."

In prepared comments for the conference call McMullen emphasized:-

  • Kroger Corp. will continue to be managed to achieve long-term growth
  • Kroger brands Private Selection™ and Simple Truth™ will be emphasized in store offerings based on acceptability
  • Internet sales are increasing
  • Employees will receive wage increases and training to improve customer interaction
  • Kroger will be aggressive in sales having expended $3.8 billion in lowering prices over 15 years.