10-Q - KROGER CO (0000056873) (Filer)

Fri, Sep 20, 8:09 PM (14 days ago)

In the second quarter of 2024, Kroger reported marginal sales growth of 0.2% year-over-year, totaling $33,912 million, while net earnings surged to $466 million compared to a loss of $180 million in Q2 2023. Adjusted net earnings per diluted share decreased 3.1% to $0.93. Operating profit improved significantly to $815 million from a loss of $479 million, aided by reduced operating expenses and increased FIFO gross margin. However, cash flow from operations declined by 21% to $3.5 billion, reflecting challenges in managing working capital. Kroger's liquidity remains robust with $2.8 billion in cash and temporary investments. The company is navigating uncertainties related to its proposed merger with Albertsons, which is facing regulatory scrutiny. Capital expenditures increased, reflecting ongoing investments in store projects and digital capabilities. The effective tax rate was 24.1%, up from 9.1% in the previous year, influenced by state taxes and tax credits. Overall, Kroger's financial health exhibits resilience amidst economic pressures, though future operations may be impacted by merger-related developments and market conditions.