Kroger Co. reported its financial results for the second quarter and the first two quarters of fiscal 2024, highlighting a modest increase in sales and a significant turnaround in profitability compared to the previous fiscal period. For the second quarter ended August 17, 2024, total sales reached $33,912 million, a slight increase of 0.2% from $33,853 million in the same quarter of 2023. For the first two quarters, total sales were $79,181 million, also up 0.2% from $79,018 million year-over-year.
Operating profit for the second quarter was $815 million, a substantial recovery from an operating loss of $479 million in the prior year. For the first two quarters, operating profit increased to $2,109 million from $991 million in the same period of 2023. Net earnings attributable to Kroger for the second quarter were $466 million, compared to a net loss of $180 million in the same quarter of 2023. For the first two quarters, net earnings rose to $1,413 million from $782 million year-over-year.
Earnings per diluted share for the second quarter were $0.64, reversing a loss of $0.25 per share in the previous year. For the first two quarters, earnings per diluted share increased to $1.93 from $1.07. Adjusted net earnings per diluted share for the second quarter were $0.93, reflecting a 3% decrease from $0.96 in the prior year.
Kroger's gross margin rate improved to 22.56% in the second quarter, up from 21.79% in the same period of 2023, driven by a favorable product mix and effective cost management. Operating, General and Administrative (OG&A) expenses as a percentage of sales decreased to 17.36% from 20.49% year-over-year, attributed to cost-saving initiatives.
Strategically, Kroger is advancing its merger with Albertsons, which includes a commitment to divest certain assets to address antitrust concerns. The company has also agreed to sell its Kroger Specialty Pharmacy business to CarelonRx for approximately $485 million, expected to close in the second half of 2024. As of August 17, 2024, Kroger's total assets were $51,443 million, up from $50,505 million at the end of the previous fiscal year.
Kroger's cash and temporary cash investments increased to $2,786 million, up from $1,883 million at the end of fiscal 2023. The company continues to focus on digital sales growth, which increased by 11% in the second quarter, supported by strong delivery and pickup solutions. The company anticipates ongoing investments in its omnichannel retail strategy to enhance customer experience and drive long-term growth.
About KROGER CO
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