HUTCHINSON, Kan. — The Kroger Co. announced on Thursday its results for the Third Quarter of 2022. The parent company of Dillons delivered what its CEO calls 'strong results' in Q3.
Third Quarter Highlights include:
- Identical Sales without fuel increased 6.9%
- Operating Profit of $841 million; Adjusted FIFO Operating Profit of $1,094 million
- EPS of $0.55; Adjusted EPS of $0.88
- Company is executing its go-to-market strategy to deliver value for customers
- Our Brands identical sales increased 10.4%
- Digital sales grew 10%
- Fresh Produce Initiative accelerated with a total of 1,252 stores certified, driving higher identical sales
Comments from Chairman and CEO Rodney McMullen
"Kroger achieved strong results in the third quarter as we continue to execute our Leading with Fresh and Accelerating with Digital strategy. Our associates are doing an outstanding job delivering a full, fresh and friendly experience across our seamless store and digital ecosystem.
Kroger's value proposition, which includes providing great quality, fresh products at affordable prices, data-driven promotions, trusted Our Brands products and an industry-leading fuel rewards program, is resonating with shoppers and driving increased customer loyalty.
This quarter demonstrates the strength of our approach to growing our business. By delivering for our customers, investing in our associates and supporting our communities, we are creating attractive and sustainable total returns for our shareholders."
Total company sales were $34.2 billion in the third quarter, compared to $31.9 billion for the same period last year. Excluding fuel, sales increased 6.4% compared to the same period last year.
Gross margin was 21.4% of sales for the third quarter. The FIFO gross margin rate, excluding fuel, decreased 5 basis points compared to the same period last year. This result reflected Kroger's ability to effectively manage higher product cost inflation and shrink through strong sourcing practices, while also helping customers manage their budgets and keeping prices competitive.
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