Kroger quarterly profit beats estimates; Harris Teeter merger cited

Kroger Co. reported a 4% increase in first-quarter profit Thursday and raised its forecast for the year, crediting the acquisition of grocer Harris Teeter Supermarkets Inc. for its better-than-expected earnings.

The nation’s largest supermarket chain, based in Cincinnati, said it earned $501 million, or 98 cents per share, up from $481 million, or 92 cents, a year earlier. Sales rose 10% to $33 billion.

The company said results were boosted by last year’s $2.44-billion purchase of North Carolina grocery chain Harris Teeter.

Kroger, which also owns Ralphs, Fry’s, Food 4 Less and other chains, earned $1.09 per share excluding certain items, 4 cents higher than analysts expected.

“We are pleased to start the year with growth momentum while also returning $1.1 billion in cash back to shareholders this quarter through our buyback program.” said Rodney McMullen, Kroger chief executive.

Excluding fuel centers, same-store sales, a key measure of retail health, advanced 4.6%.

The grocery chain raised its fiscal 2014 earnings forecast to between $3.19 and $3.27 per share. Previously it predicted $3.14 to $3.25 per share.

Kroger shares closed up $2.39, or 5%, at $49.66.

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