Kroger Reports 15 Percent Increase In Q1 Profits

Cincinnati, OH (AHN) - Kroger Co. (KR), the nation's largest traditional grocer reported a 15 percent increase in first quarter net income sparked buy strong sales in discounted food and drug products.

Kroger reported net income of $386 million or 58 cents a share on revenue of $23.11 billion, for their first quarter ended May 24. This compares to income of 47 cents a share and revenue of $20.73 for the same period a year earlier.

The results beat the analyst estimates of 55 cents a share on revenue of $22.32 billion, according to a poll by Thomson Financial.

Kroger boosted the low end of its full year earnings guidance by 2 cents a share to a range of $1.85 to $1.90 a share.

"Kroger continues to help customers stretch their budgets in a number of ways, including lower prices and our expanded generic drug and gas discount programs," said Chairman and Chief Executive David B. Dillon, according to Dow Jones Newswire.

Kroger operates under the Fred Meyer, Ralph's and Food 4 Less names, along with their namesake Kroger stores.

Share of Kroger are trading 7 percent higher Tuesday at $27.80 a share.