US-based retail company Kroger has reported an operating profit of $912m in the third quarter (Q3) of fiscal 2023 (FY23), compared to $841m in the same period in FY22.

The retailer’s diluted earnings per share (EPS) for the period were $0.88 against $0.55 a year previously.

Kroger delivered total sales of $34.0bn in Q3 FY23, slightly down from $34.2bn in the same quarter of the previous year.

Digital sales increased by 11% in Q3 FY23, and delivery sales grew by 20% over the previous year, driven by Kroger Boost and customer fulfilment centres.

The retailer’s identical (ID) sales decreased 0.6% over the quarter after growing 6.9% in the same period a year previously. ID sales without fuel would have grown 1.0% in Q3 2023.

Its gross margin over the period accounted for 22.0% of sales.

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By GlobalData

Kroger chairman and CEO Rodney McMullen stated: “Kroger’s third-quarter results highlight the strength and diversity of our business model in a challenged operating environment, as strong fuel performance and growth in our alternative profit businesses supported continued adjusted net earnings per diluted share growth.

“As consumer spending tightens, we are focused on providing customers with exceptional value. By maintaining our long-term commitment to lower prices, personalised promotions and rewards, we are growing households and increasing loyalty, positioning Kroger for sustainable future growth.

“We appreciate our associates and continue to invest in wages, benefits and training, which is resulting in continued improvements in our customer experience.

For the full year 2023, Kroger expects identical sales without fuel to grow between 0.6% and 1.0%.

The retailer expects adjusted first-in, first-out operating profit between $4.9bn and $5.0bn and adjusted diluted EPS between $4.50 and $4.60.