Kroger (NYSE:KR) is the largest supermarket chain operating in the United States. Most of these stores have pharmacies, and Kroger neared 3,000 total locations by the end of fiscal 2018.
Kroger and other grocery chain stocks have encountered turbulence since Amazon acquired Whole Foods, essentially announcing its entrance into the grocery retail sector.
Kroger released its fourth-quarter and full-year results for 2018 on March 7. Adjusted earnings in the fourth quarter were reported at $390 million or $0.48 per share compared to adjusted earnings of $483 million or $0.54 per diluted share in the prior year.
Kroger also saw sales drop 9.5% year-over-year in Q4 2018, largely due to the sale of its convenience store business and the acquisition of Home Chef. The extra week in 2017 also had an impact.
Kroger has jumped into the digital sphere, mimicking other grocery retailers who are moving to counter Amazon’s influence. Digital sales rose 58% in fiscal 2018. The company expanded its online grocery and/or pickup service to 91% of households in trade areas.
For the full-year GAAP net income rose to $3.11 billion or $3.76 per diluted share, compared to net income of $1.91 billion or $2.09 per diluted share in the prior year.
The stock is still trading at the low end of its 52-week range and enters fiscal 2019 with a strong balance sheet. Shares had an RSI of 54, which puts it in neutral territory in mid-April.
