US supermarket operator Kroger has announced in a press release a 6 per cent fall in third-quarter earnings to US$237.7m due to the impact of Hurricane Ike, which resulted in the group forking out US$25m for disruption and damage caused by the deluge.
Sales during third quarter ended 8 November rose by 9 per cent to some US$17.6bn in comparison to same period last year, with identical supermarket sales up by 5.6 per cent, excluding fuel.
“Kroger’s sales continue to be strong in this tough economy. We know our customers are increasingly feeling pressured in today’s environment. Kroger’s focus on low prices, quality products and providing a convenient, one-stop solution for their daily needs is resonating with our customers,” said David B. Dillon, Kroger chairman and CEO, in a statement.
“Looking ahead to 2009, we are currently projecting identical supermarket sales growth, excluding fuel, of 3 per cent to 5 per cent,” Mr Dillon added. “This will enable Kroger to generate earnings per share growth that, combined with Kroger’s dividend, will create a favorable return for shareholders even in a difficult economic environment.”
The group expects to open, expand or relocate approximately 60 stores and complete between 165 and 180 store remodels during fiscal 2008.
During the first three quarters of fiscal 2008, Kroger’s total sales increased by 10.9 per cent to US$58.7bn over the same period last year. Identical supermarket sales, excluding fuel, increased 5.4 per cent compared with the same period a year ago.
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