Retailers Home Depot, Sears, Kohl's and JCPenney Among Winners of EPA Star Partner Awards

The US Environmental Protection Agency and Department of Energy will be hosting its annual Energy Star Partner of the Year awards in Washington, DC, on April 20. Of the approximately 16,000 companies who partner with the EPA on their broad-based energy efficiency program, 128 companies are being recognized as Energy Star Partners of the Year.

Retailers among the 128 winners include Home Depot, Sears, Best Buy, Kroger, Kohl’s, Food Lion, Staples and JC Penney. “Energy Star Partner of the Year Award winners are delivering advanced energy efficiency solutions that help American families and businesses save money by saving energy. Their efforts play an important role in protecting the environment by reducing greenhouse gas emissions, while also moving our nation closer to a clean energy future.” said Department of Energy Secretary Ernest Moniz. Adds EPA Administrator and event key note speaker Gina McCarthy, “Our Energy Star Partner of the Year award winners demonstrate that energy efficiency is a smart business decision that supports their bottom line, and helps their customers save money and energy.”

Source: Retailing Today

Kroger Extends Comp Streak With 5.6% Gain

December 4, 2014

Momentum continues to build at Kroger where the company elevated expectations for its fourth quarter performance after a better than expected showing in the third quarter.

The company reported a 5.6 percent increase in identical store sales, extending to 44 the number of quarters in which it has posted a positive number.  It also said fourth quarter identical stores sales would increase from 4 percent to 5 percent and shared favorable 2015 preliminary guidance that implies the trend of improved productivity at existing stores isn't about to end.  Based on the better than expected third quarter performance, Kroger raised and narrowed its current full year adjusted earnings per share guidance to a range of $3.32 to $3.36 from $3.22 to $3.28.

"Kroger continues to deliver consistently remarkable results.  We expect to exceed our long-term earnings per share growth rate for fiscal 2014," said Kroger CEO Rodney McMullen.  "Our associates shine brightest during the holiday season and we intend to continue our positive momentum through the fourth quarter."

In the third quarter period ended November 8, total sales increased 11.2 percent to $25 billion compared to $22.5 billion for the same period last year.  Total sales, excluding fuel, increased 13.7%.

Profits during the period totaled $362 million, or 73 cents a share, compared to $229 million, or 57 cents a share, the prior year.

Source: Retailing Today

Kroger Raises Full-Year Guidance

September 11, 2014

Kroger reported total sales of $25.3 billion, representing an increase of 11.6% for its second quarter.  Total sales, excluding fuel, increased 12.4% in the second quarter over the same period last year.

"We are winning with customers because we offer a full range of advantages including a great overall shopping experience, excellent customer service, a complete assortment of both national and corporate brand products and everyday low prices and promotional offerings," stated Rodney McMullen, Kroger CEO.  "As we improve our connection with customers, we are also executing our growth plan and delivering on our key performance indicators - all of which is fueling strong financial results for shareholders."

Net earnings totaled $347 million, or $0.70 per diluted share, and identical supermarket sales growth, without fuel, was 4.8% in the second quarter of fiscal year 2014, marking the 43rd consecutive quarter of positive identical supermarket sales growth.

Net earnings in the same period last year were $317 million, or $0.60 per diluted share.

Based on the second quarter results, the company raised and narrowed its adjusted net earnings per diluted share guidance to a range of $3.22 to $3.28 for fiscal 2014.  The previous guidance was $3.19 to $3.27 per diluted share.  Kroger raised its identical supermarket sales growth guidance, excluding fuel, to 3.5% to 4.3% for fiscal 2014.  The previous guidance was 3% to 4%.

This is the second consecutive quarter that includes Harris Teeter in Kroger's statement of operations.  Year-over-year percentage comparisons are affected as a result.

Source: Retailing Today

Kroger And Costco Outshine Walmart

March 6, 2014

Walmart didn't mention competitive issues as a source of sales weakness during its fourth quarter, but reports this week from Kroger and Costco indicate they were at least a contributing factor.

This was especially true in the case of Costco.  Recall that Sam's reported a same store sales decline of 0.1% during the fourth quarter ended January 31, after a 1.8% gain the prior year.  Operating income fell 15.3% to $425 million.  At the time, Sam's president and CEO Rosalind Brewer said the underlying health of the Sam's Club business was sound and that restructering efforts, including the elimination of 2,300 positions from club operations were allowing Sam's to be more agile and focused on growth opportunities.

"The stragegies we have in place will deliver value for our members, helping to grow the business and drive strong financial performance in fiscal year 2015," Brewer said.

Sam's expects its same store sales for the first quarter ending May 2 to be relatively flat following a 0.2% gain last year.

Conversely, Costco grew its U.S. same store sales, excluding fuel by 5% during its second quarter ended February 16.  Sam's fourth quarter and Costco's second quarter don't totally match up, but both companies' reporting periods included the holiday season.  It was evident from Costco's results and comments from CFO Richard Galanti that Costco went hard after price at the expense of profitability during the shortened and weather impacted holiday season.

For example, despite the 5% domestic comp increase, Costco's net income declined to $463 million, or $1.05 a share, compared to $547 million, or $1.24 a share, during the second quarter the prior year.  Comparisons to the prior year were made more difficult because the period included a 14 cent a share one time tax benefit related to a portion of a special cash dividend the company paid in December 2012 to 401k plan participants.

"Even with that distinction, however, the year-over-year comparison was unfavorable," Galanti said.

Contributing to profit pressures at Costco were weaker sales and gross margin results in certain non-foods merchandise categories, particularly during the four-week holiday selling season, weaker gross margins in the fresh foods business and lower reported international profits resulting from the significant weakening of foreign exchange rates, according to Galanti.

"The first four-week period of the quarter represented the majority of earnings underperformance in the quarter," Galanti said.  Costco's second quarter began on November 25, 2013 and encompassed the Thanksgiving weekend which fell late last year and compressed the holiday season.

While Costco was outcomping Sam's, Kroger was doing the same to Walmart and made no mention of bad weather or food stamp reductions in its earnings release.  Kroger reported a 4.3% increase in identical store sales, excluding fuel, and said it expects first quarter comps to rise between 2.5% and 3.5% against a backdrop of minimal inflation.

Walmart reported a 0.4% decline in same store sales at U.S. stores following a 0.3% increase last year.  Looking forward, Walmart's forecast for first quarter same store sales is flat compared to a prior year decline of 1.4%.

Source: Retailing Today