Other highlights of the first quarter:
FIFO gross margin was 25.19% of sales, a reduction of 82 basis points from the first quarter of 2004. Excluding the effect of fuel, FIFO gross margin declined 40 basis points – in line with Kroger's expectations – as the Company continued to invest in lower prices for customers.
Operating, general and administrative (OG&A) costs declined 62 basis points to 18.39% of sales. Excluding fuel, OG&A declined 29 basis points. OG&A at the supermarket divisions, excluding Ralphs and the effect of fuel, fell nine basis points.
Capital investment totaled $400.6 million, compared to $456.7 million a year ago.
Kroger repurchased 9.5 million shares of stock at an average price of $16.06 for a total investment of $153 million. There is approximately $208 million remaining under the $500 million stock buyback announced last September. Since January 2000, Kroger has invested $2.9 billion to repurchase 150.3 million shares – equivalent to approximately 17% of the Company. Kroger continues to buy back stock.
Total debt was $7.5 billion, a reduction of $508.7 million from a year ago.
Mr. Dillon said Kroger continues to rebuild its business in southern California. Identical supermarket sales without fuel at both Ralphs and Food 4 Less were positive in the first quarter and, on a combined basis, increased 1.3% over the prior-year period. Earnings before interest, taxes, depreciation and amortizaer the prior-year period. Earnings before interest, taxes, depreciation and amortization (EBITDA) at Ralphs and Food 4 Less were in line with Kroger's expectations.
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