For the coming year management sees same-store sales rising 3% to 5% excluding fuel and earnings per share coming in between $1.83 and $1.90. Full year same-store sales rose 5.3% in 2007 (6.9% with fuel), and earnings were $1.69.
Kroger is considering acquisitions in the coming 12 months, said Donnie McGeorge, the company's chief operating officer, during a conference call. "We continue to look at several opportunities and at the right price, we'd deal with it," he said. Among its purchases last year were 20 Farmer Jack stores in the Michigan from the Great Atlantic & Pacific Tea Co. and 18 Scott's Food and Pharmacy units from Supervalu.
Kroger is also continuing its trend of taking market share from other grocery chains, management says, though one competitor is still succeeding. "In our view, Wal- Mart is still doing well in groceries," said David Dillon, Kroger's chairman and chief executive officer.
Management is forecasting 2% to 2.5% square footage growth for the year. The company operates 2,486 supermarkets and multi-department stores, 782 convenience stores, 394 jewelry stores and 696 supermarket fuel centers. Its chains include Kroger, Ralphs, Fred Meyer, Food 4 Less and others.
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