Identical-supermarket sales grow 2.4%

CINCINNATI — Kroger Co. on Thursday said its first quarter profit increased nearly 10% to $680 million, or 70 cents per share, on a 2.4% rise in same-store sales, excluding fuel.

“We are very pleased with a solid quarter during which we continued to strengthen our connection with customers and expand our ClickList offering to more customers in more markets. Fifty consecutive quarters of positive identical supermarket sales growth, excluding fuel, is extraordinary,” Rodney McMullen, Kroger’s chairman and chief executive officer, said in a statement.

Kroger has been pushing its ClickList and ExpressLane online-ordering programs into additional cities. It has also been expanding its offerings of organic products and solidifying its status as the nation’s largest supermarket chain. In the past year, Kroger entered a strategic partnership with Lucky’s Market of Longmont LLC, a specialty grocer focused on natural, organic and locally grown food, and acquired Roundy’s Inc., operator of more than 150 grocery stores and about 100 pharmacies across Wisconsin and Illinois.

“Our associates work tirelessly to produce these consistently remarkable results, McMullen added. “We’ve been through all kinds of business cycles during the last 50 quarters, and we’ve demonstrated time and again that regardless of the environment, you can count on Kroger to continue executing our strategy, investing in growth and creating value for our customers and shareholders.”

Kroger confirmed its net earnings guidance range of between $2.19 and $2.28 per diluted share for 2016. Based on current fuel margin trends, the company believes it will be at the low-end to midpoint of this range. Kroger expects fuel margins will be at or slightly below the five-year average. The company confirmed its identical-supermarket sales growth guidance, excluding fuel, of between 2.5% and 3.5%, and said it expects to enhance shareholder return with additional dividend increases.