Kroger reports fiscal 3q 2009 results

The Kroger Company reported identical supermarket sales increased 1.3% without fuel in the third quarter of fiscal 2009 ended November 7, 2009, compared with the same period in 2008. Total sales, including fuel, in the third quarter were $17.7 billion versus $17.6 billion for the same period a year ago.

Kroger reported a net loss for the third quarter of $874.9 million, or $1.35 per diluted share. Net earnings in the same period in 2008 were $237.7 million, or $0.36 per diluted share.

For the first three quarters of fiscal 2009, total sales were $58.2 billion compared with $58.9 billion for the same period a year earlier. Excluding fuel sales, total sales increased 3.3% over the same period in the prior year. For the same period, identical supermarket sales, excluding fuel, rose 2.4%.

Kroger reported a net loss of $185.4 million for the first three quarters of fiscal 2009, or $0.28 per diluted share. Net earnings for the same period in 2008 were $900.2 million, or $1.36 per diluted share.

“The operating environment we saw during the third quarter was more challenging than we anticipated, obscuring some otherwise strong fundamentals in our performance such as exceptional tonnage growth, market share gains, increases in loyal household count, and good cost control. These fundamentals are important to our long-term success,” said David B Dillon, Kroger’s chairman and chief executive officer.

“In the near-term, our financial results are being pressured by factors including persistent deflation, unusually intense competition, and the cautious mindset of customers. We are making adjustments to balance the challenges of the current environment with Kroger’s long-term objective for sustainable identical sales and earnings growth, which we believe will create value for shareholders,” he said.