Stock of the Day
|
Kroger (KR)
Kroger Posts Strong Quarter Peformance
Kroger (KR: Charts, News, Offers) beat out Wall Street expectations today with a better-than-expected quarterly profit. The Cincinnati-based grocery chain saw its net income increase to $435.1 million from $386 million a year earlier. Kroger also reported that its sales increased 3.9% from last year, excluding gasoline purchases. Although, Kroger did note that gas prices for this quarter were on an average 41% lower than last year. How is Kroger able to post such impressive numbers in today's economic climate?
|
| Daily Chart |
If you are not able to see the chart, your email client probably does not support javascript. To view it, please click here
|
|
| InvestorGuide is Hiring - Join our Team! |
| InvestorGuide is looking for intelligent, high-energy, self-motivated professionals to fill our exciting positions. We are currently hiring for a wide variety of positions, including Vice President, Senior Ad Sales Executive, and Senior Web Developer. For more information about the positions and our company, or to apply, visit our Careers page today! |
|
| Stock Analysis |
For Kroger, it started several years ago when it made a strategic decision to compete with Wal Mart's grocery sections. In order to achieve this goal, Kroger knew it needed to streamline its system so that unnecessary costs were eliminated. Kroger directed a majority of its restructuring efforts towards its inventory process. As a result, Kroger is now very accurate with its inventory forecasting, which has been instrumental in its recent success. Although it took Kroger a few years to refine its methods, the Cincinnati-based supermarket is really reaping the benefits of its hard work, especially as the economy continues to flounder. However, there were other factors that led to Kroger's break out quarter.
|
Kroger has also worked hard to build an affordable, value-oriented store brand that shoppers like. Its store brand has gained tremendous consumer traction and has even forced some bigger brand names to lower their prices in order to compete. The store brand image resonates perfectly with consumers in today's world. As personal budgets tighten, consumers are looking for affordable, quality food offerings now more than ever. Kroger's store brand success coupled with an increase in domestic consumer eating has been a lucrative combination. Overall, the store brand has done very well for Kroger.
|
Kroger seems like it is headed in the right direction. The supermarket chain has developed an efficient and accurate inventory system as well as a store brand with a strong customer following. Kroger also appears to have a good pulse on its shopper's needs, which is evident by its phenomenal first quarter performance. Although gasoline margins have plateaued, its grocery success has been very good. Kroger is hoping to build off its recent, positive momentum as it enters its next fiscal quarter.
|
Profile |
Click here to view a detailed profile of Kroger.
|
|
|
|
|
