Dive Brief:
- Kroger reported net income of $347 million (70 cents a share) in the second quarter — some 9.46% higher than a year earlier and slightly above the 69 cents a share that analysts expected.
- Kroger, the largest grocer in the U.S., also increased its profit estimates for the full fiscal year to $3.22 to $3.28 a share, up from earlier forecasts of $3.19 to $3.27.
- Total sales for Cincinnati-based retailer soared 11.6% to $25.3 billion, topping the $24.9 billion forecast by analysts.
Dive Insight:
This was very busy quarter for Kroger, marked by a series of major purchases and initiatives. Most notable was the announcement last week that the company planned to hire some 20,000 new workers. But the second quarter also saw the supermarket company purchase online vitamin seller Vitacost in a $280 million deal and launch three new store brands.
Given the numbers the company reported for Q2, and given the sheer volume of new deals and products Kroger is announcing these days, it's easy to think that the company's growth is unstoppable. But, of course that's what the British used to think about Morrisons. And that's clearly not true now.