Kroger (NYSE:KR) this morning posted first-quarter earnings results that included market-thumping sales gains. Earnings spiked higher by 14% as the grocery store chain outgrew all other major national food retailers. Up 54% in the past year, the stock rose by a further 3% immediately following the announcement.
Here's a big-picture look at how the headline results stacked up against Wall Street's expectations.
| Metric | Expected | Actual |
| Revenue | $33.3 billion | $33.1 billion |
| Profit | $1.22 per share | $1.25 per share |
"EXPECTED" IS THE AVERAGE TARGET OF THE 20 ANALYSTS THAT COVER THE STOCK. SOURCE: YAHOO! FINANCE AND KROGER FINANCIAL FILING
Soaking up market share
Sales growth was held to just 0.3% thanks to sinking fuel prices that pinched Kroger's bustling gasoline business. More importantly, comparable-store sales, which strips out volatile fuel price swings, spiked higher by 5.7%.
Sales growth was held to just 0.3% thanks to sinking fuel prices that pinched Kroger's bustling gasoline business. More importantly, comparable-store sales, which strips out volatile fuel price swings, spiked higher by 5.7%.
For investors keeping score, that marks the fifth consecutive quarter in which Kroger has grown faster than Whole Foods(NASDAQ:WFM). The grocer also trounced Wal-Mart's 1.1% first-quarter comps -- and even passed Costco's 5% growth. Kroger is clearly doing a few things right to be outpacing all of its food retailing rivals. Management thinks its customer satisfaction focus has been the key difference. "Our results show the power of our customer first strategy," CEO Rodney McMullen said in a press release.
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