Kroger CEO says 'pleased' with improvement of trends in supermarket business
Chairman and CEO Rodney McMullen said, "The Restock Kroger framework is designed to reposition our core business by 2020 while continuing to deliver for shareholders. We are pleased with the improvement of trends in our supermarket business in the second quarter. Guided by our customer obsession, Kroger delivered our best identical sales, without fuel, result since the launch of our transformation plan. FIFO gross margin, without fuel and pharmacy, was stable in our supermarket business. Gross margin headwinds in pharmacy were offset by strong fuel performance during the quarter. We continue to reduce costs and are on track to deliver $100 million in incremental operating profit through alternative profit stream growth. We delivered strong free cash flow and are now within our targeted net total debt to adjusted EBITDA range. Kroger is laser-focused on executing against our 2019 plans and realizing our vision of serving America through food inspiration and uplift."