Kroger Lowers FY16 Net Earnings Guidance - Quick Facts

(RTTNews) - The Kroger Co. (KR) announced, as a result of continued deflation, it lowered net earnings guidance range to $2.03 to $2.13 per share for 2016. Kroger's adjusted net earnings guidance range per share for 2016 is $2.10 to $2.20, which excludes the $0.07 charge from the company's commitment to restructure certain multi-employer pension obligations. The previous guidance range was $2.19 to $2.28, which did not anticipate the $0.07 charge from the company's commitment to restructure certain multi-employer pension obligations. For identical supermarket sales growth, excluding fuel, the company expects the remainder of 2016 to be in the 0.5% to 1.5% range, which is 1.4% to 1.8% for the full year.

For fiscal 2016, the company lowered expected capital investments - excluding mergers, acquisitions and purchases of leased facilities - to $3.6 to $3.9 billion for the year. The previous expectation was $4.1 to $4.4 billion.

Over the long term, the company expects to achieve its net earnings per share growth rate guidance of 8 - 11%, plus a growing dividend.

The Kroger Co. reported net earnings of $383 million, or $0.40 per share, and identical supermarket sales growth, without fuel, of 1.7% in the second quarter of 2016. Excluding charges, Kroger's adjusted net earnings were $454 million, or $0.47 per share. Net earnings in the same period last year were $433 million, or $0.44 per share.

Second-quarter total sales increased 4.0% to $26.6 billion from $25.5 billion for the same period last year. Total sales, excluding fuel, increased 7.3% in the second quarter. Total sales, excluding fuel and Roundy's, increased 2.9%.