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Kroger Q1 Earnings Call Transcript
Author: 123jump.com Staff
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Last Update: 12:22 AM ET June 30 2009

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The grocery chain retailer quarterly sales dipped 1.5% to $22.8 billion. Net quarterly income rose 12.6% to $435.1 million. Earnings per share increased to 66 cents from 58 cents a year-ago quarter. The company estimates earnings between $2.00 and $2.05 a share for fiscal 2009.


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David B. Dillon

I don’t have that number, if we’re looking to see if we have that.

W. Rodney McMullen

The 40 basis points was Fred Meyer only, John, not total non-food.

David B. Dillon

And in the fourth quarter, that would have been a bigger impact than in the first quarter because it was a fourth quarter holiday season.

W. Rodney McMullen

It was about 20 basis points or so in the first quarter versus 40 in the fourth quarter because of what Dave said.

David B. Dillon

So about half the impact.

W. Rodney McMullen

The holiday selling.

John Heinbockel - Goldman Sachs

Okay, thanks.

David B. Dillon

Thanks, John.

Operator

The next question comes from the line of Simeon Gutman representing Canaccord Adams. Please proceed.

Simeon Gutman - Canaccord Adams

First, can you just touch on basket versus traffic? And then as a follow on to that, if we look at the basket that consumers are purchasing today, can the number of units actually continue to go down? And I’m just asking you to base that on history. And where I’m going is if you get a little bit of reinflation in the back half of the year, could that be a good thing or if basket size is to go down further, could you see more sensitivity from the customer?
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