Kroger Co (NYSE:KR) came out Thursday with fourth-quarter earnings.
The Cincinnati-based grocer reported GAAP net earnings for the fourth quarter totaled $259 million, or $0.32 per diluted share. GAAP net earnings in the same period last year were $854 million, or $0.96 per diluted share.
Adjusted net earnings totaled $390 million, or $0.48 per diluted share. Adjusted net earnings in the same period last year were $483 million, or $0.54 per diluted share
Total sales decreased 9.5% to $28.1 billion in the fourth quarter compared to $31.0 billion for the same period last year. Excluding fuel, the 53rd week in fiscal 2017, the convenience store business unit divestiture, and the merger with Home Chef total sales increased 1.6% in the fourth quarter over the same period last year.
Gross margin was 22.0% of sales for the fourth quarter. Excluding fuel, the 53rd week, and the LIFO (last-in-first-out) credit, gross margin decreased 93 basis points from the same period last year due mostly to changes in mix and investments in supply chain, as well as investments in price.
Kroger recorded a LIFO credit of $10 million in the fourth quarter, compared to a $54 million LIFO credit in the same quarter last year.
Said CEO Rodney McMullen, "We reached our FIFO (first-in-first-out) operating profit goal and finished the year with sales and business momentum. We have a clear path to achieve $400 million in incremental FIFO operating profit growth and $6.5 billion in cumulative Restock cash flow by the end of 2020."
Shares wilted $3.44, or 12.1%, to $25.00
