On June 16th The Kroger Company (KR) posted results for Q1 of FY2022 ending May 21st Kroger is the second largest retailer of groceries in the U.S. and is a pure supermarket play subject to the pressures of COVID in 2021 and the overhang, escalation in food, logistic and labor costs in common with national and regional competitors.
For the quarter, the Company earned $664 million on revenue of $34,952 million with a diluted EPS of $0.90. For the corresponding Q1 of FY2021, Kroger earned $143 million on sales of $41,298 million with a diluted EPS of $0.18. Revenue was 8.0 percent higher and gross margin increased by 0.9 percent to 21.6 percent compared to Q1 2021.
In commenting on quarterly results, Rodney McMullen CEO stated, Kroger achieved strong first quarter results as we successfully executed on our strategy of Leading with Fresh and Accelerating with Digital. We are incredibly proud of our associates who continue to put the customer at the center of everything we do.
Our team is doing an outstanding job managing costs in an inflationary environment, which is allowing us to continue to invest in our associates while providing our customers the freshest food at affordable prices when and where they need it. We are delivering everyday value through personalized experiences, trusted Our Brands products, data-driven promotions, and seamless e-commerce solutions.
Looking ahead, we are well positioned to continue delivering for our customers, investing in our associates, and driving sustainable returns for shareholders."
The Company release included FY 2022 Guidance:-
- Identical Sales growth without fuel of 2.5 to 3.5 percent
- Adjusted EPS of $3.85 to $3.95
- Adjusted Operating Profit of $4.2 billion to $4.4 billion
- Capital expenditure of $3,800 to $4,000 million
Comparable same-store sales for Q1 increased by 4.1 percent (excluding fuel) compared to Q1 FY 2021.
On May 21st Kroger posted total assets of $49,091 of which $4,004 million comprised goodwill and intangibles, up 0.6 percent from the end of Q1 of 2021. Long-term debt and lease obligations attained $21,473 million, 3.8 percent lower than May 22nd 2021.
At the end of FY2021, Target Corporation operated 2,750 stores with 2,255 pharmacies, under 25 banners in 35 states and D.C. Kroger incorporates 34 food plants and 45 distribution centers with three Ocado fully automated fulfillment centers with as many as twenty planned
The Kroger Company had an intraday market capitalization of $34,889 million on June 27th. The Company has traded over the past fifty-two weeks in a range of $37.26 to $62.78 with a 50-day moving average of $52.60. KR trades with a forward P/E of 12.3. On June 16th the share closed at $50.34 but after the release opened at $46.36 on June 17th.
Twelve-month trailing operating margin was 3.1 percent and profit margin 1.5 percent. The Company generated a return on assets of 5.5 percent and 23.5 percent on equity.