The Kroger Company is an American retailer founded by Bernard Kroger in 1883 in Cincinnati, Ohio. It is the country's largest supermarket chain by revenue ($103,033,000,000 for 2014), second-largest general retailer (behind Walmart), and 23rd largest company.
Kroger is also the fifth largest retailer in the world. As of December 2015, Kroger operates, either directly or through its subsidiaries, 2,620 supermarkets and multi-department stores.
As of March 2, Kroger Co. shares had fallen six per cent in pre-market trading, as their stock dropped; after having disclosed their fourth quarter fiscal year 2015.
The company reported earnings per share (EPS) of 57cUS, which topping analysts’ estimates of 54cUS by 3cUS; however Net revenue of $26.17 billion was shy of analysts’ expectations of $26.29 billion.
Despite the bumpy road, Kroger stated that sales at established stores, excluding fuel sales, were up 3.9 per cent compared to last year’s growth of six per cent. Moreover, six weeks of sales at the recently acquired Roundy’s Supermarkets revealed a growth of 3.7 per cent.
Furthermore, the company disclosed that total active workforce grew by more than 9,000 in FY15; further explaining that most of the new jobs were allocated in the company’s supermarket divisions, which ranged from full-time department heads and assistant managers, to part-time clerks.
With a focus on better merchandising, costs and improved marketing, the company is projected to deliver a 4.4 per cent rise in same-store sales (excluding fuel). While that would mark an almost two percentage point decline from the year-ago quarter, it's nonetheless impressive.
In comparison, Wal-Mart Stores Inc. In the most recent quarter posted a less-than one per cent rise in same-store sales, thus indicating that despite recent events, KR stock still looks attractive
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