KROGER FY results

For the 53 weeks of fiscal 2006, Kroger has reported that total sales increased 9.2% to USD66.1 billion. After adjusting for the extra week in fiscal 2006, total sales increased 7.0% over fiscal 2005. Identical supermarket sales increased 6.4% with fuel and 5.6% without fuel, based on a 53-week period in both years. Net earnings for fiscal 2006 were USD1.11 billion. “Kroger delivered consistently strong results during 2006, exceeding our original guidance for both identical supermarket sales and earnings per share,” said Kroger CEO David Dillon. “These results and the gains we have made in market share throughout the year indicate that Kroger continues to compete effectively in this challenging environment." In the fourth quarter, the retailer also reported that total sales increased 14.5% to USD16.9 billion. After adjusting for the extra week in the quarter, total sales increased 5.7% over the fourth quarter of fiscal 2005. Identical supermarket sales increased 5.6% with fuel and 5.3% without fuel, based on a 13-week period in both years. Net earnings in the fourth quarter totalled USD384.8 million, an increase of more than 36% compared to last year's Q4 result. Kroger has also said that labour negotiations will be challenging this year. The grocer has negotiations with employees in Southern California; Cincinnati and Toledo, OH; Detroit, MI; Houston, TX; Memphis, TN; Seattle, WA and West Virginia this year.