Shares in The Kroger Co. (NYSE: KR) responded Thursday to quarterly earnings announced before the opening bell.
The company today reported net earnings of $508 million, or $0.62 per diluted share, in the second quarter of 2018, which ended on August 18. Kroger's second quarter adjusted net earnings were $336 million, or $0.41 per diluted share.
The 2018 second-quarter adjustment items relate primarily to the change in the market value of Kroger's investment in Ocado securities.
Net earnings for the second quarter 2017 were $353 million, or $0.39 per diluted share. Kroger reported identical sales, without fuel, of 1.6% for the second quarter of 2018.
The company claims that, after only two quarters into its three-year Restock Kroger plan, it is making solid progress. The report is quoted as saying, "Kroger customers have more ways than ever to engage with us seamlessly through our recently-launched Kroger Ship, expanded availability of Instacart, successful ClickList offering, and selling Simple Truth in China through Alibaba's Tmall.
"We feel good about our net earnings per diluted share and ID sales results in the second quarter. We expect our investments in space optimization during the first half of 2018 to become a tailwind late in the third quarter."
Total sales increased 1.0% to $27.9 billion in the second quarter compared to $27.6 billion for the same period last year. Excluding fuel, the convenience store business unit divestiture and the merger with Home Chef, total sales increased 1.8% in the second quarter over the same period last year.
Kroger shares tumbled $3.02, or 9.5%, to $28.71, first thing in the morning Thursday.
