Executive Summary

• Kroger reported 4Q15 revenues of $26.2 billion, up 3.8% year over year and slightly below the consensus estimate of $26.3 billion. EPS was $0.57, beating the consensus estimate by three cents.
• Same-store sales growth excluding fuel was 3.9%. Including six weeks of results from the acquired Roundy’s chain, same-store sales growth excluding fuel was 3.7%.
• For FY16, the company expects same-store sales growth to be identical to FY15’s, i.e., 2.5%–3.5%, which translates to revenues of $112.6 billion, below the consensus estimate of $119.0 billion. The company also expects EPS of $2.19–$2.28, in line with the consensus estimate of $2.23.