Kroger's Q1 income falls 14%

Cincinnati Kroger said Thursday that its first-quarter net income fell 14% as its costs rose faster than its revenue.

Net income fell 14% to $373.7 million from $435.1 million a year earlier, while same-store sales rose 2.4%, excluding gas sales.

Revenue rose 9% to $24.76 billion from $22.79 billion, led by gasoline sales. Excluding gasoline, revenue rose 3%.

Higher healthcare and pension costs and credit-card fees offset the sales improvement.

Analysts also have been anticipating added pressure on Kroger as Wal-Mart Stores has recently become more aggressive about cutting its prices on food to pull customers from Kroger and other traditional grocers.

Kroger has implemented price-cutting and promotions in response to rising competition.

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