Kroger(US:KR)2025-06-20 12:06Sales Performance - Identical sales without fuel increased by 3.2% in Q1 2025 compared to Q1 2024[7] - Total company sales were $45.1 billion in Q1 2025, a decrease from $45.3 billion in Q1 2024, with a 3.7% increase excluding fuel and adjustment items[8] - Identical sales excluding fuel rose to $39,766 million in the first quarter of 2025, up 3.2% from $38,535 million in the same period of 2024[45] - eCommerce sales increased by 15% in Q1 2025[7] - Sales for Q1 2025 were $45,118 million, a slight decrease from $45,269 million in Q1 2024, representing a decline of approximately 0.3%[62] Profitability - Operating profit for Q1 2025 was $1,322 million, with adjusted FIFO operating profit at $1,518 million[6] - Adjusted EPS for Q1 2025 was $1.49, up from $1.43 in Q1 2024[6] - Gross profit for Q1 2025 reached $10,356 million, compared to $9,941 million in Q1 2024, marking an increase of about 4.2%[62] - Adjusted FIFO operating profit for Q1 2025 was $1,518 million, compared to $1,499 million in Q1 2024, indicating an increase of about 1.3%[58] - Operating profit for Q1 2025 was $1,322 million, slightly up from $1,294 million in Q1 2024, representing an increase of approximately 2.2%[58] Financial Guidance and Projections - Full-year 2025 guidance for identical sales without fuel has been updated to a range of 2.25% to 3.25%[17] - Adjusted free cash flow is projected to be between $2.8 billion and $3.0 billion for 2025[21] Debt and Liabilities - Kroger's net total debt to adjusted EBITDA ratio increased to 1.69 from 1.25 a year ago, with a target range of 2.30 to 2.50[16] - Total liabilities increased to $44,340 million in 2025 from $39,166 million in 2024, marking an increase of 13.2%[39] - Net total debt rose to $13,547 million in 2025, up 39.4% from $9,718 million in 2024[48] - Long-term debt, including obligations under finance leases, increased to $17,138 million in 2025 from $12,021 million in 2024, a rise of 42.5%[48] Cash Flow and Assets - Cash and temporary cash investments at the end of the period were $4,738 million, up from $2,863 million in 2024, reflecting a significant increase of 65.5%[41] - The net cash provided by operating activities was $2,149 million in 2025, down from $2,342 million in 2024, a decrease of 8.2%[41] - Total current assets increased to $15,765 million in 2025 from $14,163 million in 2024, representing an increase of 11.3%[39] Store Closures - Kroger plans to close approximately 60 stores over the next 18 months, recognizing a $100 million impairment charge, but expects a modest financial benefit from these closures[13] Shareholder Information - The total common shares outstanding decreased to 661 million at the end of the period in 2025 from 722 million in 2024, a reduction of 8.5%[39] - The average number of common shares used in diluted calculation decreased to 664 million in Q1 2025 from 727 million in Q1 2024[52] Earnings - Net earnings including noncontrolling interests decreased to $868 million in 2025 from $956 million in 2024, a decline of 9.2%[41] - Net earnings attributable to The Kroger Co. for Q1 2025 were $866 million, down from $947 million in Q1 2024, reflecting a decrease of approximately 8.5%[52] - Adjusted net earnings excluding adjustment items for Q1 2025 were $996 million, compared to $1,047 million in Q1 2024, indicating a decline of about 4.9%[52] Margins - Gross margin improved to 23.0% in Q1 2025 from 22.0% in Q1 2024, primarily due to the sale of Kroger Specialty Pharmacy[9] - Gross margin improved to 23.0% in Q1 2025, up from 22.0% in Q1 2024, reflecting a year-over-year increase of 1 percentage point[62]