Kroger Co (NYSE:KR) shares fell back in price Thursday, on the release of quarterly earnings.
The Cincinnati-based store chain reported total company sales were $42 billion in the first quarter, compared to $37 billion for the same period last year. Excluding fuel and dispositions, sales grew 19.1%.
Gross margin was 24.3% of sales for the first quarter. The FIFO gross margin rate excluding fuel increased 44 basis points, due to sales leverage related to shrink, transportation, warehousing and advertising costs.
Digital sales grew 92%, making for an Earnings per Share of $1.52; The grocer also achieved operating profit of $1.3 billion; Adjusted FIFO Operating Profit was $1.5 billion.
Moreover, Kroger invested more than $830 million to support and safeguard associates, customers and communities, including today's installment of Thank You Pay for frontline workers. The company also contributed an additional $236 million to multi-employer pension plans to help stabilize future associate benefits.
CEO Rodney McMullen, "The COVID-19 pandemic and the most recent instances of racial injustice have changed our country in unmistakable ways, not the least of which is the devastating loss of life and livelihood that has affected so many Americans. Kroger remains guided by our purpose and our values.
“I am proud of our associates who stepped up when we were called to be there for our customers, communities and each other. Our company is proud to stand with our Black associates, customers and communities against racism and for a more just and equitable society.”
KR dropped 69 cents, or 2.1%, to $32.12.
