Kroger Posts Strong Q4, Expects More of the Same

CINCINNATI-Grocer Kroger Co. posted strong fourth-quarter and year-end results, in line with competitors in the supermarket sector, and executives are forecasting similar results in the coming fiscal year. Same-store sales during the fourth quarter increased 5.3% year over year (8.2% including fuel), while total sales rose 2.2%, to $17.2 billion.

For the coming year management sees same-store sales rising 3% to 5% excluding fuel and earnings per share coming in between $1.83 and $1.90. Full year same-store sales rose 5.3% in 2007 (6.9% with fuel), and earnings were $1.69.

Kroger is considering acquisitions in the coming 12 months, said Donnie McGeorge, the company’s chief operating officer, during a conference call. “We continue to look at several opportunities and at the right price, we’d deal with it,” he said. Among its purchases last year were 20 Farmer Jack stores in the Michigan from the Great Atlantic & Pacific Tea Co. and 18 Scott’s Food and Pharmacy units from Supervalu.