Boston, MA 06/20/2014 (wallstreetpr) – The Kroger Co. (NYSE:KR), the U.S. largest supermarket chain that recently acquired grocer and pharmacy operator Harris Teeter, saw its 1Q2014 performance figures exceed expectations. The company believes that there is more to come in terms of positive performance as it makes internal improvements and tap new business opportunities.
Nobody saw it coming, but the company concluded 1Q with a profit of $501 million or $0.98 per share, suggesting 4 percent increase from the same quarter a year earlier. As if that was not enough, the company beat estimates that were projected at a profit of $481 million or $0.92 per share for the quarter.
It was all good news on the revenue front where the company saw its top line at $32.96 billion, suggesting an increase of 10 percent from the same quarter in period last year.
Tracing the support area
The Kroger Co. (NYSE:KR) praised its move to acquire Harris Teeter. It acquired the business in January for $2.4 billion and although the company did not break out individual results due to the business, it was clear that its contribution to earnings in the latest quarter helped the figures up.
According to the company, the healthy foods department delivered not just strong results in the quarter, but also pointed the company to where its potential lies. The CEO Rodney McMullen cited that the segment gained support as customers adopt healthier lifestyles thereby seeking out for natural foods. With the opportunity revealed, the company intends to pursue opportunities in the category aggressively.
All said and done
The Kroger Co. (NYSE:KR) sees its sales full-year sales up 3 – 4 percent, suggesting an improvement from the original sales growth outlook of 2.5 – 3.5 percent for the full-year. On the earnings front, the company expects to earn a profit between $3.19 and $3.27 per share in fiscal 2014. It originally forecast earnings to come between $3.14 and $3.25 per share.