CINCINNATI, OH - In the great grocery retail race, Walmart, Target, and Aldi are pulling ahead as one of the race’s longtime frontrunners stumbles. This week, Kroger announced the results from its fourth quarter and fiscal 2018, citing low revenue and profit despite making a series of strategic moves, including partnering with Ocado and Home Chef. As a result, The Wall Street Journal reported that the retailer’s shares fell nearly 14 percent this morning.

“We have our work cut out for us, as the market points out this morning,” Chief Executive Officer Rodney McMullen said to WSJ.

In a press release, Kroger reported the following results for its fourth quarter ended February 2, 2019:

• GAAP net earnings for the fourth quarter totaled $259 million, or $0.32 per diluted share. GAAP net earnings in the same period last year were $854 million, or $0.96 per diluted share
• Adjusted net earnings totaled $390 million, or $0.48 per diluted share. Adjusted net earnings in the same period last year were $483 million, or $0.54 per diluted share
• Total sales decreased 9.5% to $28.1 billion in the fourth quarter compared to $31.0 billion for the same period last year
• Gross margin was 22.0% of sales for the fourth quarter

For its fiscal year 2018, the retailer reported the following results:

• Total sales decreased 1.2% to $121.2 billion in 2018 compared to $122.7 billion in 2017
• GAAP net earnings for 2018 totaled $3.1 billion, or $3.76 per diluted share. GAAP net earnings in 2017 were $1.9 billion, or $2.09 per diluted share
• Adjusted net earnings totaled $1.7 billion, or $2.11 per diluted share. Adjusted net earnings in 2017 were $1.8 billion, or $1.95 per diluted share
• For fiscal 2018, Kroger's adjusted net earnings per diluted share result was slightly ahead of the company's internal expectations due to results from the solid early execution of Restock Kroger, including process changes that led to sustainable cost controls and higher-margin alternative profit streams. This performance allowed Kroger to continue making incremental Restock Krogerinvestments while delivering on its guidance range for the year
• Gross margin was 21.7% of sales in 2018

"Kroger solidly delivered on what we set out to do in 2018, which was an investment year that laid the groundwork for us to achieve our 2020 Restock Kroger targets including financials,” McMullen said in a press release. “As America's grocer, Kroger has the winning combination of local presence plus a digital ecosystem enhanced by strategic partnerships enabling us to offer our customers anything, anytime, anywhere. We are transforming from grocer to growth company by deploying our assets to serve even more customers and create margin-rich alternative profit streams. We are well positioned to deliver on our Restock Kroger vision to serve America through food inspiration and uplift."

For a complete listing of its financial report, click here.

What does Kroger have up its sleeve to increase its revenue and profit for 2019? AndNowUKnow will continue to keep you posted on all things grocery retail.

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