U.S. supermarket chain Kroger Co has reported that first quarter profit rose on strong grocery sales but did not raise its full-year outlook.
By Ellie Duncan
For the quarter ended May 23, net income was $435.1 million, or 66 cents a share, compared to $386 million, or 58 cents a share a year earlier.
Sales of Kroger’s store-brand products made up 35 percent of all units sold in the quarter, while name-brand grocery sales declined in the period, although at a slower rate than the last six months of 2008.
Commenting on the results in a conference call with analysts, Chief Executive David Dillon said: “While our earnings per share results were well ahead of the consensus estimate, they were only slightly ahead of our own internal budget.”
He added: “Shoppers remain cautious in this economy and we do not anticipate that changing any time soon”.
The company stood by its full-year forecast for earnings per share of $2.00 to $2.05.