The Kroger Co. reported net earnings of $2 billion in the first quarter of 2018, which ended on May 26. Kroger's first quarter adjusted net earnings were $626 million, up from $546 million last year. The stronger-than-expected results led to the company's stock jumping 11 percent in the early hours of trading. 

"Restock Kroger is off to a fantastic start," said Chairman and Chief Executive Officer Rodney McMullen. "Everything we do supports our customers engaging seamlessly with Kroger. Kroger is creating the future of retail by innovating our core business and adding exciting partnerships like Ocado and our planned merger with Home Chef. We are on track to generate the free cash flow and incremental FIFO operating profit that we committed to in Restock Kroger. We are confident in our ability to deliver on our plans for the year and our long-term vision to serve America through food inspiration and uplift."

Among its achievements, the company said it grew digital sales 66 percent in the first quarter. It also achieved its highest-ever dollar share in the history of Our Brands, driven by double-digit growth in Simple Truth and Simple Truth Organic; announced location of second Kitchen 1883 restaurant; opened a new Culinary Innovation Center; and hosted its second Natural Foods Innovation Summit.

Additionally in Q1 Kroger announced its partnership with online grocery supermarket Ocado; entered into a merger agreement with Home Chef; expanded its partnership with Instacart; completed the sale of its convenience store business unit for $2.15 billion; and announced new offerings to enhance Kroger Precision Marketing powered by 84.51°, which connects advertisers with digitally engaged customers at the point of purchase and creates alternative revenue for Kroger by monetizing six billion annual digital interactions on owned properties.