Same-store sales up for 49th straight quarter

CINCINNATI — Kroger Co. on Thursday said profits increased 17% to $2.04 billion in the fiscal year ended January 30 on a 1.3% rise in sales to $109.8 billion. The company said same-store supermarket sales, excluding fuel, have now increased for 49 consecutive quarters.

“2015 was an outstanding year for Kroger,” chairman and chief executive officer Rodney McMullen said. “We delivered on our performance targets, grew market share, created 9,000 new jobs, supported our communities and continued to expand our use of technology to drive growth. And we’re not done. In 2016 we will continue making a difference for our customers and associates, growing our business, and delivering value for shareholders.”

But McMullen said Kroger’s 2016 sales would grow at a slower pace. The company expects identical-store sales, excluding fuel, will increase between 2.5% and 3.5%. That’s down from the 4% to 4.5% prediction the company made in December. Kroger said the lowered range reflects less inflation, mild winter weather and the merger with Roundy’s Inc., a Milwaukee-based supermarket operator that Kroger acquired for $800 million in December.

For its fiscal fourth quarter, Kroger said identical-store sales, excluding fuel, increased 3.9%. Net earnings totaled $559 million, or 57 cents per diluted share, the company said.

Kroger has 2,778 supermarkets in 35 states and the District of Columbia operating under banners including Kroger, Food 4 Less, Harris Teeter, Mariano’s, Ralphs and Smith’s.