Kroger(KR) - 2025 Q3 - Quarterly Results

Sales Performance - Identical sales without fuel increased by 2.3% in Q3 2024[2] - Digital sales grew by 11% in Q3 2024[2] - Total company sales for Q3 2024 were $33.6 billion, a decrease from$34.0 billion in Q3 2023, primarily due to the sale of Kroger Specialty Pharmacy and lower fuel sales[8] - Sales for Q3 2024 were $33.634 billion, a slight decrease from$33.957 billion in Q3 2023, representing a 100% sales ratio for both periods[31] - Year-to-date sales for 2024 were $112.815 billion, compared to$112.975 billion in 2023, maintaining a 100% sales ratio[31] - Identical sales excluding fuel for Q3 2024 increased by 2.3% to $29.47 billion, compared to$28.818 billion in Q3 2023[44] - Year-to-date identical sales excluding fuel for 2024 increased by 1.2% to $97.595 billion, compared to$96.397 billion in 2023[44] Profitability Metrics - Operating profit for Q3 2024 was $828 million, with an EPS of$0.84[2] - Adjusted FIFO operating profit reached $1,017 million, and adjusted EPS was$0.98[2] - Operating profit for Q3 2024 was $828 million (2.5$912 million (2.7% of sales) in Q3 2023[31] - Year-to-date operating profit for 2024 was $2.937 billion (2.6$1.902 billion (1.7% of sales) in 2023[31] - Net earnings attributable to The Kroger Co. for Q3 2024 were $618 million (1.8$646 million (1.9% of sales) in Q3 2023[31] - Year-to-date net earnings for 2024 were $2.031 billion (1.8$1.428 billion (1.3% of sales) in 2023[31] - Net earnings including noncontrolling interests for 2024 is $2.038 billion, a 42.5$1.430 billion in 2023[39] - Net earnings attributable to The Kroger Co. for Q3 2024 were $618 million, compared to$646 million in Q3 2023[54] - Year-to-date net earnings for 2024 were $2,031 million, up from$1,428 million in 2023[54] - Adjusted net earnings excluding adjustment items for Q3 2024 were $719 million, compared to$698 million in Q3 2023[54] - Year-to-date adjusted net earnings excluding adjustment items for 2024 were $2,447 million, down from$2,500 million in 2023[54] - Net earnings per diluted share for Q3 2024 were $0.84, compared to$0.88 in Q3 2023[54] - Adjusted net earnings per diluted share excluding adjustment items for Q3 2024 were $0.98, compared to$0.95 in Q3 2023[54] - Year-to-date adjusted net earnings per diluted share excluding adjustment items for 2024 were $3.34, down from$3.42 in 2023[54] - Operating profit for Q3 2024 was $828 million, compared to$912 million in Q3 2023[63] - Year-to-date operating profit for 2024 was $2,937 million, up from$1,902 million in 2023[63] - Adjusted FIFO operating profit excluding adjustment items for Q3 2024 was $1,017 million, compared to$1,022 million in Q3 2023[63] Gross Margin and LIFO Charges - Gross margin for Q3 2024 was 22.9%, with FIFO gross margin rate excluding fuel increasing by 51 basis points[9] - LIFO charges for Q3 2024 were $4 million, compared to$29 million in Q3 2023[35] - Year-to-date LIFO charges for 2024 were $66 million, down from$131 million in 2023[35] Debt and Financial Ratios - Kroger's net total debt to adjusted EBITDA ratio improved to 1.21 from 1.40 a year ago[14] - Total debt increased by $9.838 billion to$22.601 billion in 2024, compared to $12.763 billion in 2023[48] - Net total debt decreased by$1.814 billion to $9.478 billion in 2024, compared to$11.292 billion in 2023[48] - Adjusted EBITDA for the rolling four quarters ended November 9, 2024, is $7.845 billion, compared to$8.078 billion for the same period in 2023[49] - Net total debt to adjusted EBITDA ratio improved to 1.21 in 2024 from 1.40 in 2023[49] Cash Flow and Capital Expenditures - Adjusted free cash flow guidance for 2024 remains at $2.5 –$2.7 billion[16] - Net cash provided by operating activities for 2024 is $4.39 billion, compared to$4.868 billion in 2023[39] - Payments for property and equipment, including lease buyouts, increased to $3.133 billion in 2024 from$2.907 billion in 2023[39] - Proceeds from issuance of long-term debt in 2024 is $10.499 billion, compared to none in 2023[39] Assets and Liabilities - Total assets as of November 9, 2024, were$62.418 billion, up from $51.021 billion as of November 4, 2023[37] - Total liabilities as of November 9, 2024, were$49.524 billion, compared to $39.830 billion as of November 4, 2023[37] Guidance and Forecasts - Full-year 2024 guidance for identical sales without fuel was narrowed to 1.20$4.6 – $4.7 billion[16]