Financial Performance - Kroger reported solid third quarter results driven by strong pharmacy and digital performance, reflecting the effectiveness of its value creation model[110]. - Sales for the third quarter ended November 9, 2024, were $33,634 million, a decrease of 1.0% compared to $33,957 million for the same period in 2023[1]. - Identical sales excluding fuel increased by 2.3% in the third quarter and 1.2% in the first three quarters of 2024 compared to the same periods in 2023[123]. - Operating profit for the third quarter was $828 million, representing a 9.2% decrease from $912 million in the third quarter of 2023[118]. - Adjusted net earnings attributable to The Kroger Co. per diluted common share were $0.98 for the third quarter, a 3% increase compared to $0.95 in the same quarter of 2023[117]. - Digital sales increased by 11% in the third quarter and 10% in the first three quarters of 2024 compared to the same periods in 2023[123]. - Net earnings attributable to The Kroger Co. for the third quarter of 2024 were $618 million, a decrease of 4.3% compared to $646 million in the third quarter of 2023[140]. - Total sales to retail customers without fuel for the third quarter of 2024 were $30,023 million, reflecting a 1.5% increase from $29,580 million in the third quarter of 2023[145]. - The company achieved adjusted FIFO operating profit of $1,017 million for the third quarter, a 0.5% decrease compared to $1,022 million in the same quarter of 2023[119]. - The gross margin rate for the third quarter of 2024 was 22.85%, up from 22.03% in the third quarter of 2023, primarily due to the sale of the Kroger Specialty Pharmacy business and strong performance in Our Brands[156]. Shareholder Returns and Capital Management - Kroger aims to achieve total shareholder return within the target range of 8% to 11% over time[108]. - The company has authorized a new share repurchase program totaling $7.5 billion, with $5.0 billion expected to be repurchased through an accelerated share repurchase program[107]. - The company paused its share repurchase program in Q3 2022 to prioritize deleveraging following the proposed merger with Albertsons[107]. - During Q3 2024, the company repurchased approximately 146,000 shares for $9 million at an average price of $55.98 per share; total repurchases for the first three quarters amounted to $125 million for 2.3 million shares[198]. - The company announced a new share repurchase program of $7.5 billion on December 11, 2024, with $5.0 billion expected to be repurchased via an accelerated share repurchase program[200]. Debt and Liquidity - Kroger is committed to maintaining its investment grade debt rating and a net total debt to adjusted EBITDA ratio target range of 2.30 to 2.50[107]. - Total debt increased by $10,375 million primarily due to issuing $10,500 million of senior notes for the proposed merger with Albertsons[114]. - Total debt increased to $22.6 billion as of November 9, 2024, up $10.4 billion from $12.2 billion at the end of fiscal year 2023, primarily due to the issuance of $10.5 billion in senior notes[196]. - As of November 9, 2024, the company held cash and temporary cash investments of $13.4 billion, reflecting net proceeds from a $10.5 billion senior notes issuance in Q3 2024[201]. - The company expects to meet its short-term and long-term liquidity needs through cash flows from operating activities and other liquidity sources, including borrowings under its commercial paper program and bank credit facility[202]. - The company operates with a working capital deficit due to efficient cash use in funding operations and consistent access to capital markets[202]. Operational Focus and Strategy - Kroger's retail business is focused on enhancing customer experience through its four pillars: Fresh, Our Brands, Personalization, and Seamless[104]. - The company plans to maximize growth opportunities in its retail business while investing in associates and providing greater value for customers[106]. - Kroger's value creation model is designed to generate strong free cash flow and support long-term sustainable net earnings growth[107]. - The company is focused on retention by investing in associates through enhanced wages, benefits, and training opportunities[111]. Market and Sales Trends - Supermarket fuel sales decreased by 18.8% in the third quarter of 2024, totaling $3,335 million compared to $4,105 million in the same period last year[145]. - The average retail fuel price decreased by 14.9% in the third quarter of 2024, contributing to the decline in supermarket fuel sales[148]. - Total sales decreased by 1.0% in the third quarter of 2024, amounting to $33,634 million, down from $33,957 million in the third quarter of 2023[145]. - Total sales, excluding fuel and Kroger Specialty Pharmacy, increased by 2.7% in the third quarter of 2024 compared to the third quarter of 2023[148]. - Identical sales for the third quarter of 2024 were $29,470 million, a 2.3% increase compared to $28,818 million in the third quarter of 2023, which saw a decrease of (0.6)%[152]. - For the first three quarters of 2024, identical sales reached $97,595 million, reflecting a 1.2% increase from $96,397 million in the same period of 2023, which had a 1.5% increase[153]. Tax and Expenses - The effective income tax rate for the third quarter of 2024 was 23.3%, down from 23.9% in the third quarter of 2023, while the rate for the first three quarters of 2024 was 21.8%, compared to 24.8% in the same period of 2023[178]. - Operating, General and Administrative (OG&A) expenses as a percentage of sales were 17.54% in the third quarter of 2024, up from 16.63% in the third quarter of 2023[162]. - The LIFO charge was $4 million in the third quarter of 2024, significantly lower than $29 million in the same quarter of 2023, and $66 million for the first three quarters of 2024, down from $131 million in the same period of 2023[158]. Other Notable Events - The proposed merger with Albertsons was terminated on December 11, 2024, leading to the automatic termination of related loan commitments[203]. - There has been no material change to the company's critical accounting estimates since the filing of its Annual Report on Form 10-K for the fiscal year ended February 3, 2024[207]. - As of November 9, 2024, the company had no forward-starting interest rate swap agreements or treasury lock agreements outstanding[209].

CINCINNATI, Dec. 13, 2024 /PRNewswire/ -- The Kroger Co. (NYSE: KR), America's grocer, today shared all the ways customers can save as they prepare for the holiday season, offering more than $1,200 in savings on everyday items and yuletide essentials across the store. Visit Kroger.com or the Kroger app where ahead of the holidays, Kroger is offering more than $1,200 per week in digital coupons. "This holiday season, we want customers to create lasting memories and share their tables with an open heart," ...

At least for now, the deal between Kroger (NYSE: KR ) and Albertsons (NYSE: ACI ) is off. Albertsons is poised to sue for their deal termination fee which, if obtained, would most likely kill any chance for a futureI'm a full time value investor and writer who enjoys using classical value ratios to pick my portfolio. Long-term focused on low P/B, P/FCF, Owner Earnings discounting, PEG ratios, the Graham Number and an occasional net-net hunter. I also believe tracking earnings growth versus price appreciatio ...

Cases of Beam Suntory Inc. Jim Beam brand bourbon sit stacked in the warehouse at Southern Glazer's Wine and Spirits LLC distribution center in Louisville, Kentucky, U.S., on Friday, Sept. 28, 2018.The Federal Trade Commission in a new lawsuit accuses the largest U.S. distributor of wine and spirits of illegal price discrimination that gave large chain buyers, including Costco and Kroger, much better prices than those offered to neighborhood grocery stores, convenience shops and independent liquor stores.Th ...

The Kroger Co. (KR) continues to solidify its leadership in the industry after the blocking of the merger deal with Albertsons Companies (ACI) . In the latest revelation, KR has terminated the merger agreement with ACI, following the U.S. District Judge, Adrienne Nelson, in Oregon has blocked this planned acquisition deal. According to media reports, this suit was brought by the Federal Trade Commission, along with eight states and the District of Columbia. (Read More: Kroger’s Deal to Acquire Albertsons Co ...

Kroger Company KR disclosed the termination of its merger agreement with Albertsons Companies, Inc. ACI following a preliminary injunction by the U.S. District Court in Oregon.Kroger's Board approved a new $7.5 billion share repurchase program, replacing the previous $1 billion authorization from September 2022.The company plans to execute an accelerated share repurchase (ASR) agreement for about $5 billion of common stock. Kroger anticipates strong free cash flow and remains focused on capital allocation p ...

Key TakeawaysKroger shares rose Thursday morning after the retailer said it is abandoning the Albertsons merger and restarting stock buybacks.The grocery chain said after the bell Wednesday that it will begin a new $7.5 billion buyback plan after pausing buybacks since announcing the merger in October 2022.Albertsons said Wednesday that it was ending the merger agreement and suing Kroger, accusing the chain of not doing enough to win approval for the deal. Kroger (KR) shares rose Thursday morning after the ...

Reiterates Commitment to Investing in America to Lower Grocery Prices, Raise Associate Wages, and Support Local CommunitiesHighlights Resilience of Value Creation Model and Strong Momentum to Drive Long-term, Sustainable GrowthBoard of Directors Authorizes $7.5B Share Repurchase Program including $5B Accelerated Share RepurchaseCINCINNATI, Dec. 11, 2024 /PRNewswire/ -- The Kroger Co. (NYSE: KR) today terminated its merger agreement with Albertsons after the U.S. District Court for the District of Oregon gra ...

The Kroger Co.’s (KR) well-woven strategies have been reinforcing its position in the industry. We note that the company had entered into a deal to acquire Albertsons Companies (ACI) for $24.6 billion in October 2022.In the latest update, the U.S. District Judge, Adrienne Nelson, in Oregon has blocked this planned acquisition deal, according to the media reports. This is because the aforesaid deal might cut competition for the U.S. grocery shoppers, thereby leaving them prone to increased prices, per source ...

Albertsons sued Kroger after a US judge blocked the merger of the supermarket giants, claiming Kroger failed to exercise “best efforts” and take “any and all actions” to secure regulatory approval.In addition to a $600 million termination fee, Albertsons is seeking “billions of dollars in damages from Kroger to make Albertsons and its shareholders whole” and relief for the years and millions of dollars that went down the drain after the deal failed, the company said. Albertsons said it terminated the deal. ...