Kroger swung to a fiscal third-quarter loss as expenses increased, though the company said it continues to make progress on its strategic priorities. ...

Core Insights - Kroger missed Wall Street estimates for third-quarter sales due to price-sensitive shoppers and economic uncertainty affecting demand for groceries and fresh produce [1] Company Summary - Kroger's sales performance in the third quarter fell short of analysts' expectations, indicating challenges in attracting customers amid economic pressures [1]

Sales Performance - Kroger's total sales for Q3 2025 were $33.9 billion, a 0.9% increase from $33.6 billion in Q3 2024, with identical sales without fuel rising by 2.6%[7][6] - Sales for Q3 2025 reached $33,859 million, a slight increase from $33,634 million in Q3 2024[30] - Identical sales, excluding fuel, for year-to-date 2025 were $30,062 million, reflecting a 2.6% increase from $29,302 million in 2024[45] Earnings and Profitability - The adjusted earnings per share (EPS) for Q3 2025 was $1.05, compared to $0.98 in Q3 2024, while the reported EPS was $(2.02) due to a $2.6 billion impairment charge[4][6] - Operating profit for Q3 2025 was a loss of $1,541 million, compared to a profit of $828 million in Q3 2024[30] - Net earnings attributable to Kroger Co. for Q3 2025 were a loss of $1,320 million, down from a profit of $618 million in Q3 2024, representing a decline of 314%[30] - Year-to-date net earnings for 2025 were $155 million, down from $2,031 million in 2024[52] - Adjusted net earnings excluding items above for Q3 2025 were $697 million, slightly down from $719 million in Q3 2024[52] Financial Position - The net total debt to adjusted EBITDA ratio increased to 1.73 from 1.21 a year ago, with a target range of 2.30 to 2.50[14] - Total current assets decreased to $15,994 million in Q3 2025 from $25,025 million in Q3 2024[38] - Total liabilities decreased to $44,401 million in Q3 2025 from $49,524 million in Q3 2024[38] - Cash and temporary cash investments at the end of Q3 2025 were $3,956 million, down from $13,358 million at the end of Q3 2024[40] - Net total debt decreased to $14,276 million from $22,601 million, a reduction of $4,591 million[48] - Long-term debt, including obligations under finance leases, decreased to $16,081 million from $22,414 million, a reduction of $6,333 million[48] Cash Flow and Investments - Net cash provided by operating activities for year-to-date 2025 was $4,658 million, compared to $4,390 million in 2024[40] - Total capital investments, excluding lease buyouts, were $2,863 million, compared to $2,816 million in the previous year[41] - The company plans to continue its $7.5 billion share repurchase program, having completed a $5 billion accelerated share repurchase in Q3 2025[13] - Kroger's capital allocation strategy includes a commitment to pay dividends and invest in long-term sustainable growth, with expected free cash flow of $2.8 to $3.0 billion for FY25[12][15] Margins and Costs - Kroger's gross margin improved to 22.8% in Q3 2025, up from 22.4% in Q3 2024, primarily due to the sale of Kroger Specialty Pharmacy and lower supply chain costs[8][9] - Gross profit for Q3 2025 was $7,735 million, compared to $7,534 million in Q3 2024, resulting in a gross margin of 22.8%[64] - The company recorded LIFO charges of $44 million in Q3 2025, compared to $4 million in Q3 2024[36] - The company reported a LIFO charge of $176 million for the rolling four quarters ended November 8, 2025, compared to $48 million in the previous year[49] Future Outlook - The company expects to achieve identical sales without fuel in the range of 2.8% to 3.0% for FY25, narrowing from the previous guidance of 2.7% to 3.4%[15][19] - The company expects continued challenges in the market, impacting future earnings guidance[56]

Core Insights - Kroger reported strong third quarter results for 2025, with a focus on strategic priorities and eCommerce growth, expecting profitability in its eCommerce segment by 2026 [2][3]. Financial Performance - Total sales for Q3 2025 were $33.9 billion, up from $33.6 billion in Q3 2024, with a 2.6% increase in identical sales excluding fuel [4][13]. - The company experienced an operating loss of $1.541 billion, compared to an operating profit of $828 million in the same quarter last year [3][13]. - Adjusted earnings per share (EPS) for Q3 2025 were $1.05, up from $0.98 in Q3 2024 [3][13]. - Gross margin improved to 22.8% from 22.4% year-over-year, driven by the sale of Kroger Specialty Pharmacy and lower supply chain costs [5][6]. Strategic Initiatives - Kroger completed a strategic review aimed at enhancing its eCommerce business, which saw a 17% increase in sales [2][13]. - The company made an accelerated contribution to multi-employer pension plans, which increased operating expenses but aimed to stabilize future benefits for associates [8]. Capital Allocation and Debt Management - Kroger is committed to generating strong free cash flow and maintaining its investment-grade debt rating, with plans to continue paying dividends and executing share repurchases [9][10]. - The net total debt to adjusted EBITDA ratio increased to 1.73 from 1.21 year-over-year, indicating a focus on managing leverage while investing in growth [11][32]. Guidance and Outlook - For full-year 2025, Kroger narrowed its guidance for identical sales without fuel to a range of 2.8% to 3.0% and raised the lower end of its adjusted EPS guidance to $4.75 to $4.80 [12][15].

With U.S. stock futures trading mixed this morning on Thursday, some of the stocks that may grab investor focus today are as follows:Wall Street expects Kroger Co. (NYSE:KR) to report quarterly earnings at $1.03 per share on revenue of $34.22 billion before the opening bell, according to data from Benzinga Pro. Kroger shares rose 0.5% to $66.50 in after-hours trading.UiPath Inc. (NYSE:PATH) reported upbeat third-quarter financial results and issued fourth-quarter sales guidance with its midpoint above estim ...

While grocery sales are stable, shoppers remain sensitive to prices and seek discounted items. That could impact earnings. ...

Core Insights - Kroger Co. is set to release its quarterly earnings on December 4, 2025, with analysts expecting an EPS of $1.04 and revenue of approximately $34.24 billion [1] Stock Performance - Kroger's stock is currently down 1.4%, trading at $66.61, influenced by investor anticipation of the earnings report [2] - The stock is facing resistance from its 100-day moving average, which has shifted from support to resistance [2] - Historically, Kroger has shown positive post-earnings performance, closing higher after seven of its last eight earnings reports [2] - The average stock movement following earnings announcements over the past two years has been 4.4%, with analysts predicting an 8.1% swing for the upcoming report [2] - There is notable interest in call options for Kroger stock, indicating bullish sentiment among investors [2] Financial Metrics - Kroger has a price-to-earnings (P/E) ratio of approximately 16.27, reflecting market valuation of its earnings [3] - The price-to-sales ratio is about 0.30, indicating how much investors are willing to pay per dollar of sales [3] - The enterprise value to sales ratio stands at around 0.44, reflecting the company's total valuation relative to its sales [3] Cash Flow and Leverage - The enterprise value to operating cash flow ratio is approximately 10.75, providing insight into cash flow generation relative to valuation [4] - The earnings yield is about 6.15%, offering a perspective on return on investment [4] - The debt-to-equity ratio is notably high at approximately 2.71, indicating a significant level of leverage [4] - The current ratio is around 0.95, suggesting the company's ability to cover short-term liabilities with short-term assets [4]

Core Viewpoint - Kroger Co is experiencing a decline in stock price ahead of its third-quarter earnings report, with potential for increased volatility due to the upcoming results [1] Group 1: Stock Performance and Earnings Expectations - Kroger stock has historically performed well post-earnings, finishing higher after seven of the last eight reports, with an average post-earnings move of 4.4% over the past two years [2] - Analysts are anticipating a larger-than-usual post-earnings swing of 8.1% for Thursday's trading [2] Group 2: Options Activity and Market Sentiment - There is a strong bullish sentiment for Kroger stock, reflected in a 10-day call/put volume ratio of 3.73, which is in the 78th annual percentile [4] - The Schaeffer's put/call open interest ratio (SOIR) of 0.46 is in the 18th percentile of its annual range, indicating a predominance of call options [4] Group 3: Short Interest and Volatility - Short interest in Kroger stock has increased by 11.9%, with 28.79 million shares representing 4.75% of the stock's available float [5] - The Schaeffer's Volatility Scorecard (SVS) for Kroger is at 12 out of 100, suggesting that the stock has consistently exhibited lower volatility than what its options pricing indicates [5]

Core Insights - Kroger has demonstrated resilience amidst recent economic uncertainty, with its stock appreciating by double digits over the past year [1] Company Performance - The stock performance of Kroger has been notably strong, reflecting its ability to navigate challenging economic conditions [1] Investment Perspective - The article emphasizes the importance of quality dividend-paying companies for building investment portfolios, particularly for lower and middle-class workers [1]

Core Points - The Kroger Co. is launching its '12 Merry Days of Deals' savings event from December 3 to December 14, allowing customers to access a new deal each day [2][3] - Customers can redeem these offers until December 16, enhancing their holiday shopping experience [3][4] Event Details - Each day during the event, a new deal will be available for customers to clip via Kroger.com, the Kroger app, or at checkout [3][4] - The deals will cover a variety of products, including holiday hosting items and seasonal merchandise [4] Customer Engagement - Customers are encouraged to log into their digital accounts to clip the daily coupon, with only one coupon available each day [9] - In-store, customers must enter their Rewards Card number or request the deal at checkout to apply the discount [9] Company Commitment - Kroger emphasizes its commitment to providing high-quality products at low prices, ensuring customers do not have to compromise on meal quality [6] - The company aims to enhance customer experience through its eCommerce offerings and community initiatives [11]