Enquirer News Update - Updated 6:40 p.m.
Kroger shares down 12 percent
The Cincinnati Enquirer
Shares in Kroger Co. fell more than 12 percent this morning, after the Cincinnati-based supermarket chain said cost cutting to compete with discounters would hurt its annual earnings more than previously announced.
Kroger stock stood at $15.74, off $2.27, in late morning trading. Before today's opening bell, the stock had declined 14 percent this year.
The company, the nation's largest supermarket chain, has slashed prices to fend off competition from Wal-Mart and other rivals. "It's Kroger getting more competitive with retail pricing faster than I thought or anyone else thought they would,'' BB&T Capital Markets analyst Andrew Wolf told Bloomberg News.
Kroger also announced net income for the second quarter today, saying it was up $264 million, up 3.2 percent. Sales rose 3.8 percent to $11.9 billion.
The company added, however, that the current quarter's sales would suffer compared with the period last year because many consumers stocked up following the Sept. 11 terrorist attacks.
