Kroger Co Announces $1 Billion Share Buyback; Raises FY 2012 EPS Guidance; Reaffirms FY 2012 Identical Supermarket Sales Growth Guidance

Kroger Co announced that the Board of Directors has approved a $1 billion share repurchase program that replaces the prior authorization, which was exhausted on June 12, 2012. Based on the strong results in the first quarter, the Company increased its earnings per share (EPS) guidance to $2.33 to $2.40 per diluted share for fiscal 2012. The original guidance was $2.28 to $2.38 per diluted share. The Company continues to expect identical supermarket sales growth, excluding fuel, of 3.0% to 3.5%. In accordance with original guidance, this includes the expected negative effect on sales from prescription drugs coming off patent.