Strike effects melt Kroger's net earnings
Jun 22, 2004 12:32 PM, from staff and wire reports
The Kroger Co reported net income of $262.8 million for its fiscal first quarter ended May 22, 2004. The Cincinnati OH-based grocery chain estimates the labor dispute affecting stores in Southern California reduced net earnings by $71.6 million. Net earnings in the same period a year ago totaled $351.5 million.
Total sales for the 16-week first quarter of fiscal 2004 rose 3.9% to $16.9 billion.
“We are pleased that Kroger continues to grow our identical food-store sales in a challenging operating environment,” said David B Dillon, Kroger chief executive officer. “But there is more to be done. We plan to continue making investments in pricing, customer service, and product variety to deliver strong, sustainable sales growth.”
Kroger opened, expanded, relocated, or acquired 32 food stores, and closed 22 stores in the quarter. Total food store square footage increased 2.4% over the prior year.
