Cincinnati, OH — The Kroger Co. says its higher-than-expected $255 million fourth-quarter sales were offset by higher health care and labor costs it incurred in the past year.

The company adjusted its earnings forecast to $1.60 to $1.80 per share from a prior range of $1.60 to $1.70, adding that with continued uncertainty about the economy and its operating costs, the company remains “cautious.”

For the quarter that ended January 30, profit is down 26.9 percent from the $349.2 million it earned in the same period in 2009.

Overall, total Kroger sales excluding gasoline for the year rose 7.2 percent to $18.55 billion.

Kroger operates stores under its own name and under the Ralphs, King Soopers, Fry’s and Food 4 Less chains.