Kroger Co (NYSE: KR) stock fell about 10% after the grocery retailer reported financials for the second quarter of 2017, which ended on August 12. Kroger’s reported net earnings of $353 million, or $0.39 per diluted share, and identical supermarket sales growth. The company’s net earnings for the quarter last year were $383 million, or $0.40 per diluted share. Kroger's adjusted net earnings for the second quarter last year were $454 million, or $0.47 per diluted share.
Total sales increased 3.9% to $27.6 billion in the second quarter compared to $26.6 billion for the same period last year. Kroger recorded an $18 million LIFO charge in the second quarter of 2017, compared to a $12 million LIFO charge in the same period last year.
As for guidance, Kroger confirms 2017 net earnings guidance for 53 weeks of $1.74-$1.79 per diluted share. Kroger confirms adjusted net earnings guidance range of $2.00 to $2.05 per diluted share. The company's LIFO expectation remains unchanged at $80 million.
Chairman and CEO Rodney McMullen said, "Through innovation, Kroger is redefining the food and grocery customer experience based on our core strengths. Our second quarter results demonstrate the progress we've made. We returned to positive identical supermarket sales growth in the second quarter. We had strong growth in both loyal and total households. Traffic is up, unit movement is up, market share is up, and our customers' price perception is excellent and continues to improve. We have and always will put the customer first in all we do."