US grocery chain Kroger said second quarter earnings fell 28% on the back of higher operating costs and fierce competition.
Kroger also warned that full-year results would be near the low end of its target or could fall below the range.
Earnings before tax for the period fell to $305m from $423m on total sales that rose 3.6% to $12.4bn. Like-for-like sales, excluding fuel fell 0.9%.
Kroger CEO David Billon was encouraged by the results “in the light of intense competition and continued economic uncertainty”. He added that the company “did a great job of managing costs in the second quarter in the face of challenging health care, pension and energy costs”.
Kroger also warned that full-year results would be near the low end of its target or could fall below the range.
Earnings before tax for the period fell to $305m from $423m on total sales that rose 3.6% to $12.4bn. Like-for-like sales, excluding fuel fell 0.9%.
Kroger CEO David Billon was encouraged by the results “in the light of intense competition and continued economic uncertainty”. He added that the company “did a great job of managing costs in the second quarter in the face of challenging health care, pension and energy costs”.
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