Kroger's First-Quarter Profit Rose on Lower Costs The Kroger Company, the nation's biggest supermarket chain, reported quarterly profit that topped Wall Street's forecasts as a lower tax rate, falling costs for produce and pharmacy sales bolstered earnings. Kroger, which operates Ralphs, Fred Meyer, Smith's, Food 4 Less and other grocery stores including its namesake chain, also raised its full-year profit forecast and announced a $1 billion share repurchase plan. Kroger has a sophisticated loyalty program and is known for holding down prices, even as food costs rise. That has helped the company steal share from other supermarket chains and hold its own against Wal-Mart Stores. "They have earned their customers" trust. They're not at risk of losing customers when gas prices go up, when Wal-Mart starts making ads around the country comparing prices to others," Andrew Wolf, a BB&T Capital Markets analyst, said. Profit grew 1.6 percent, to $439.4 million, or 78 cents a share, from $432.3 million, or 71 cents a share, a year earlier. Wall Street analysts had forecast income of 72 cents a share. Sales in the period, which ended May 19 and was the first quarter of Kroger's fiscal year, rose 5.8 percent, to $29.1 billion from $27.5 billion, including fuel. Shares of Kroger, which is based in Cincinnati, rose $1.29, or 6 percent, to $22.58. Kroger's same-store sales, excluding fuel, were up 4.2 percent. While the gain was more modest than the 4.9 percent increase in the preceding quarter, it was approximately in line with the 4 percent average gain analysts had expected, according to Thomson Reuters. Kroger raised its full-year profit forecast to $2.33 to $2.40 a share compared with an earlier forecast of $2.28 to $2.38 a share, and above analysts" projections for $2.32 a share, according to Thomson Reuters.