US grocery chain Kroger has reported an increase in profits, with net income for the second quarter rising to US$276.5m, or US$0.42 per share, compared with US$267.3m and US$0.38 per share in the year-earlier period. The Cincinnati-based retailer said higher sales of its store-branded items and petrol discounts that appealed to cash-strapped customers were behind the rise.
Total sales for the company, which operates the Kroger, Fred Meyer, Ralphs, Food 4 Less and other grocery chains were up 11.9 per cent to US$18.1bn.
Kroger restated its forecast of full-year earnings of US$1.85-US$1.90 per share and said it expects same-store sales growth of 4.5-5.5 per cent, excluding petrol, slightly higher than its previous forecast of 4-5.5 per cent growth.
The retailer said its forecast did not include damage from Hurricane Ike, which affected stores in Texas, Indiana, Kentucky and Ohio.
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