Kroger swings to Q3 2025 loss despite modest sales growth

Core Insights - Kroger reported a net loss of $1.32 billion for Q3 2025, a significant decline from a net income of $618 million in the same quarter of the previous year [1] - The company experienced an operating loss of $1.54 billion, contrasting with an operating profit of $828 million in Q3 2024 [1] - Quarterly sales increased to $33.85 billion, slightly above the $33.63 billion recorded a year earlier, with identical sales, excluding fuel, rising by 2.6% [1] Financial Performance - Gross margin for the three-month period was 22.8% of sales, an increase from 22.4% in the corresponding quarter of 2024 [2] - For the full year, Kroger anticipates adjusted earnings of $4.75 to $4.80 per share, slightly raising the lower end of its previous forecast [2] - The company expects identical sales growth, excluding fuel, to be between 2.8% and 3% in 2025, with the midpoint below earlier projections of a 3.14% increase [2] Strategic Outlook - In September 2025, Kroger guided for identical sales growth of 2.7% to 3.4% and maintained its outlook for annual operating income at $4.8 billion to $4.9 billion [3] - The company reiterated its full-year capital expenditure plan of between $3.6 billion and $3.8 billion [3] - Kroger's Chairman and CEO stated that the company is making meaningful progress on strategic priorities, particularly in e-commerce, which is expected to become profitable in 2026 [4]