good Ron, Kroger and you, strength solid everyone. diversity. XXXX, and value Thank results model achieved in creation morning, demonstrating our
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business financial our As grows, digital its results. impact does so our on
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nearly in engaged households. traffic in to digital households more Seamless much is wellness important Capturing loyal accelerating and and accelerator more as our non-digitally alternative opportunities create and important growth Xx health businesses. The additional households growth an business. because in as spend are households our growth profit turn and in these our model more is
a margin XX% Media, profit by businesses profit XXrd XXXX. driven increase generating alternative excluding growth in delivered and high operating in are solid XXXX, Alternative in the Kroger's profit, businesses rich. week in billion $X.XX results
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mission media advertisers and to to company most by is trusted spending continues KPM's such be this designed effective transparent their brand custom mission, holistic a ad with and offering to building decisions of clients. audiences ad more measurement. further the combination KPM approach through make as strategic compelling effectiveness
our long be supported growth, sales. will by growth innovation We for expect a and runway in digital which continued
of the second half results, in vaccine offset strong in the in wellness delivered and momentum margin gaining sales. performance as solid Health sales year, from helped growth second pressures the half GLP-X
to with medications we at and month, new Last services a agreement health customers Kroger access announced Scripts, provide ESI pharmacies. will which prescription Express
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into begin business our stores, build these time will patients take it know back to As we our teams ESI back welcome to up. the
our result, any our with benefit for ESI. recently XXXX agreement As signed guidance not does assume a
a core value our Kroger competency Improving model. productivity to creation is and essential for
preserve and We productivity enhance experience. both and initiatives, on which are the associate customer focused
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fresher, both our sales result, are and margins. we a and sell-through, optimizes products prioritize As that
of identical I'll with now along fuel financial and in walk reflect growth. X.X%. digital quarter. strong without momentum business, achieved positive We our our results, These sales grocery fourth results through with pharmacy sales the growth beginning
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of to period fourth FIFO by in primarily was gross shrink, depreciation excluding the partially margin XXrd of fuel same margins. and improvement to points rate, last increased year. offset rate The compared lower basis the attributable and Kroger Specialty and week XXXX the sale in The lower quarter the rent, pharmacy amortization, XX Pharmacy
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adjusted for was billion. credit the operating of excluding $XX was million to EPS which period $XX had period Adjusted quarter We same last year, is year. the XXrd a the FIFO last charge a to for LIFO week. the Our $X.X profit million $X.XX, compared flat of same compared
walk an our the led year, increase delivery network with through Promoter week, sales reflected enjoy fuel continued both consistently Digital without across XXXX excluding our XX% an last XX% Kroger Net sales XXrd strong experience now of with in Demand by households and identical the compared solutions our growth achieved growth increase. I'll to premium year Customers full X.X%. Kroger strong grew to of results. be delivery service traffic. Delivery and Scores. sales
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our FIFO The margin improvement on long-term strategies. margin gross reflects enhancement progress in rate
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in increased general rate, investment and cost wages, to increase was OG&A week excluding and adjustment in increased initiatives. in Specialty associate costs an of partially rate savings XXrd costs, driven by due Pharmacy, The of XX claims, the the of The offset plan continued the incentive items severity points. increase XXXX, of liability the sale execution basis Kroger by fuel,
Our $X.X operating adjusted was FIFO profit billion.
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was lower Fuel rewards lower were sales on this an important to sold loyalty with attributable of Kroger's part last the build important profitability gallons per period through last year compared program. our Fuel quarter gallon. result fuel is sold, On lower customers a per and as fewer also and year, gallons behind Fuel to of price our Plus fewer a and and fourth way an full strategy margin. the both retail fuel the average was offers Kroger results. headwind to same to year cents basis, quarter gallon
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remain customers. our keeping We low focused prices for will on
talent fulfilling and their means the operators our exceed higher bar When this customer stay levels a rates take associates respect XXXX, our benefits, a those and Creating has moment wages experience reward and associate In improved better success a approach careers. retention experience better expectations the talk This retention they're exceptional our and longer, growth. the store Ensuring sales about because business. our enterprise customer of to success on for and our create focusing and better to that our we reached to an are developing associates metrics customer drove record experience. well-being successful like deliver company. benefits year. deliver on raised associates associates. I'd associate they enables as improving We to experience
rate of resulting These hourly of $XX hour $XX XXXX, in rate in. with more associate in wage associate an an investments a than increases factored benefits than average and include more comprehensive
to are model. remains benefits the investments incorporated allow X our keep that Kroger XXXX investments increased Over prices wages in sustainable and customers. years, our XX%. guidance comprehensive and associates supporting our associates last has long-term in low growth by wages Similar committed will Kroger us and with in are to for
new fourth labor During ratified several Alaska including our with quarter, Fred we stores UFCW. the agreements, the Meyer,
to strategy. capital and I'd like turn financial allocation to now
Our provide net the to strong in range total fourth returns flexibility balance us total end of debt ratio our sheet for and our free business invest adjusted compared to and financial debt quarter, was EBITDA to the cash target our shareholders. EBITDA net ratio of adjusted Kroger's to X.X significant drive to flow X.XX, X.X. At
Our capital total to allocation shareholder to remain designed to model deliver value consistent are XX% time. our priorities over accelerate on X% return and of creation
and time, growing committed returning maintaining focused capital are our that will maximize return to current over shareholders. subject on investing excess while investment-grade over dividend time, remaining invested approval, We to rating, in projects on capital Board to our
plans and projects, while returns. our completing our to and improve focused sales growth strong long-term our storing XX for stores supporting to increase on a record major accelerate have XXXX, new delivered track that commitment higher-growth we announced major In geographies including generating flows significantly investment cash share, products We model. that storing in in growth XXXX, in
complete XX major XXXX. in expect to projects We storing
storing contributor meaningful to to also new our long-term to a We expect be beyond new would growth model to expect accelerate continue store XXXX. and openings
our our Under new capital delivered this shareholders repurchase common In of an on to program repurchase December, accelerated into billion Kroger we stock. share entered commitment a excess announced return $X $X.X authorization, to for we billion authorization. as
part initially resume that fiscal will purchased than share million under completion Kroger's the ASR, authorization later completed quarter shares to further the of program be During no the open of shareholder ASR. to value. The After remaining ASR XX.X as expected quarter, Kroger enhance $X.X is the market by fourth third we repurchases billion the of expect XXXX.
debt. redeemed the $XX.X issued terminated, financing, when new merger which Kroger Kroger billion new $X.X year, of was with $X.X Last leaving in debt billion billion of
expense higher XXXX. to we Given interest expect load, debt this increase in
net interest Assuming and of $X.XX expense net expect adjusted share million created diluted from to year accretion $XXX we of net the financing ASR earnings interest our fourth share impact current per The be million. full rates, between quarter. the in to and reduction $XXX
Turning now to XXXX guidance.
net of identical sales operating X%, per earnings billion We and to of diluted fuel $X.XX. FIFO expect X% achieve to without and $X.X of profit share to between adjusted $X.XX $X.X billion, adjusted
in approximately LIFO million, the expect We $XXX be current with charge expectations. to is assuming inflation line
as identical In terms volumes. without sales the our expect continue of cadence, slightly consistent to as to quarterly throughout fuel building be we year, we the year improve progresses
quarter first year. the be quarter share net expect we We through last earnings last above be per diluted periods each X compared to quarter same consistently expect of X to to to quarter similar adjusted and year,
of year-over-year rates, of items, relatively effects our sale terms excluding margin Pharmacy adjustment expect business. the In Kroger on and gross and we OG&A fuel FIFO of to rates, margin be a after flat Specialty excluding basis
which deliver our positioned model. are made the more results year we solid well we're We're invest Kroger, now future. business of strength our reflect the happy has in diversify us our Investments model a to about future business, deliver across another growth. excited strengthened diverse and the to to deliver In opportunities closing, and to of
investing returns in The our continue and and momentum our of for model achieving and business shareholders. to our delivering in support ability generating strength customers, our our confidence guidance attractive our the XXXX for our in associates sustainable and our
back I now it Ron. will turn to
