Kroger Co (NYSE:KR) reported its first quarter 2019 results Thursday.
The Cincinnati-based grocer reported total company sales were $37.3 billion in the first quarter, compared to $37.7 billion for the same period last year. This decrease is due to the sale of Kroger's convenience store business unit. Total sales, excluding fuel and the effect of selling the convenience store business unit, increased 2.0% from the same period last year.
Gross margin was 22.2% of sales for the first quarter. FIFO gross margin, excluding fuel, decreased 40 basis points from the same period last year, primarily due to industry-wide lower gross margin rates in pharmacy.
Operating profit was $901 million in the first quarter. Adjusted FIFO operating profit totaled $957 million in the first quarter. GAAP net earnings were $0.95 per diluted share compared to $2.37 per diluted share in the same period last year.
Over the last four quarters, Kroger has used cash to invest a combined $589 million in Ocado securities and Home Chef.
It has also contributed an incremental $185 million pre-tax to company-sponsored pension plans, repurchased five million common shares for $216 million, paid $440 million in dividends, and invested $3.0 billion in capital, excluding mergers, acquisitions, and purchases of leased facilities.
CEO Rodney McMullen said, "Because the retail industry is constantly transforming, we proactively launched Restock Kroger to deliver for our customers and shareholders. It all starts with our customer obsession, which is why Kroger is assembling a platform to deliver anything, anytime, anywhere."
Shares in Kroger doffed a penny to $23.64 Thursday morning
