Kroger reports 'strong results' in Q3

Rising digital sales and a continuing emphasis on fresh food helped The Kroger Co. achieve strong results in the third quarter, company officials said.

For the quarter ending Sept. 30, the Cincinnati-based chain reported total company sales were $34.2 billion, up from $31.9 billion for the same period last year. Identical store sales for the quarter were up 6.9% compared with a year ago, according to the release.

"Kroger achieved strong results in the third quarter as we continue to execute our Leading with Fresh and Accelerating with Digital strategy," Rodney McMullen, chairman and CEO, said in the release. "Our associates are doing an outstanding job delivering a full, fresh and friendly experience across our seamless store and digital ecosystem."

Kroger's value proposition is resonating with shoppers and driving increased customer loyalty, he said in the release. 

"This quarter demonstrates the strength of our approach to growing our business," McMullen said in the release. "By delivering for our customers, investing in our associates and supporting our communities, we are creating attractive and sustainable total returns for our shareholders."

Excluding fuel, sales increased 6.4% compared to the same period last year, according to the release.

Chief Financial Officer Gary Millerchip also raised 2022 full-year guidance for the supermarket chain.

"We now expect identical sales without fuel to be in the range of 5.1% to 5.3% and adjusted net earnings per diluted share to be in the range of $4.05 to $4.15," he said in the release. "The resiliency of Kroger's value creation model positions us well to navigate different operating environments, and as we look forward, we remain confident in our ability to deliver attractive and sustainable total shareholder returns for investors."

The company said its digital sales jumped 10% in the third quarter. In addition, the company said its Fresh Produce Initiative accelerated, with a total of 1,252 stores certified.

That has pushed identical store sales higher, the release said.

In its third quarter news release, Kroger did not mention its proposed deal, announced in October, to acquire Albertsons for $24.6 billion. That proposed merger, facing opposition from some lawmakers, unions and independent retailers, will undergo scrutiny by the Federal Trade Commission for anti-trust and competitive implications.