In a press release dated December 2nd The Kroger Company (KR) announced results for the 3rd Quarter ending November 6th. As a pure-play supermarket chain with 30 banners Kroger is a bellwether of the state of the grocery-pharmacy segment of the food industry.
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 US$ x 1,000 except EPS)
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3rd Quarter Ending
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Nov. 6th 2021
|
Nov. 7th 2020
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Difference (%)
|
|
Sales:
|
$31,860,000
|
$29,723,000
|
+7.2
|
|
Gross profit:
|
$6,901,000
|
$6,822,000
|
+1.2
|
|
Operating income:
|
$868,000
|
$792,000
|
+9.6
|
|
Pre-tax Income1
Net Income
|
$562,000
$485,000
|
$834,000
$632,000
|
-32.6
-23.2
|
|
Diluted earnings per share:
|
$0.64
|
$0.80
|
-20.0
|
|
Gross Margin (%)
|
21.7
|
23.0
|
-5.6
|
|
Operating Margin (%)
|
2.7
|
2.7
|
0
|
|
Profit Margin (%)
|
1.5
|
2.1
|
-28.6
|
|
Long-term debt, leases and obligations:
|
$21,431,000
|
$20,679,000
|
+3.6
|
|
12 Months Trailing:
|
|
|
|
|
Return on Assets (%)
|
3.5
|
|
|
|
Return on Equity (%)
|
12.3
|
|
|
|
Operating Margin (%)
|
2.0
|
|
|
|
Profit Margin (%)
|
0.9
|
|
|
|
Total Assets
|
$49,829,000
|
$48,465,000
|
+2.8
|
|
Intraday Market Capitalization
|
$33,565,000
|
|
|
Note 1. Investment loss of $94 million Q3 2021 compared to gain of $162 million in Q3 2020
52-Week Range in Share Price: $30.35 to $47.94 50-day Moving average $40.73
Market Close Dec. 1st pre-release, $40.25
Dec. 2nd post-release 11H00 EST, $45.23 (up 12.5 percent)
Forward P/E 12.9 Beta 0.4
Kroger recorded a 3.1 percent increase in identical store sales (excluding fuel) compared to Q3 2020 and 14.0% over two years. Digital sales increased 103 percent over two years
In commenting on quarterly results, CEO Rodney McMullen stated, "Kroger's strategy to lead with fresh and accelerate with digital continues to connect with our customers. Our agility, and the commitment from our amazing associates, is allowing us to navigate current labor and supply chain conditions and provide the freshest food at affordable prices across our store and digital ecosystem.
He added "Our focus on execution, combined with our continued discipline in balancing investments in our associates and customers with exceptional cost management, and growth in our alternative profit business allowed us to exceed internal expectations and deliver strong sales and earnings growth.
McMullen concluded "Across all aspects of our business, we are innovating and executing with speed against the key initiatives that are transforming our business. Kroger is in a position of strength. We are committed to delivering for our associates, customers, and communities, and we remain confident in our ability to deliver total shareholder returns of 8% to 11% over time."