HUTCHINSON, Kan. — Kroger closed out the earnings session with a strong fourth quarter report released before the bell Thursday.
Total sales for the parent company of Dillons totaled $30.7 billion compared $28.9 billion in 2019. The company had to pay out $989 million to its pension fund which drove its operating margin to a $158 million loss for the quarter. Without the one time charge the company saw a profit of $837 million.
"I am incredibly humbled by the strength of our associates and what we continue to accomplish together. Our customers are at the center of everything we do and we will continue to serve them as we have since the beginning of the pandemic, through our leadership in food and as a health partner, providing COVID-19 testing and vaccines,” said CEO Rodney McMullen.
"Kroger continued to grow market share during the quarter. Our ability to meet our customers' evolving needs is a testament to our deep competitive moats, disciplined investments in our increasingly robust digital capabilities, as well as our associates' relentless focus on our customers. We finished fiscal year 2020 with strong sales and earnings, as heightened demand for fresh, convenient food and meal solutions across modalities, including in store, pick up and home delivery, continued throughout the fourth quarter.
"Supported by our strong performance and cash position, we were pleased to commit more than $2.5 billion to safeguard the environment our associates and customers work and shop in and to reward associates, including nearly $1 billion to better secure pensions."
For the year the grocery giant saw total sales for the year of $132 billion compared with $122 billion in 2019.