Accessibility StatementSkip Navigation Second Quarter Highlights CINCINNATI, Sept. 11, 2025 /PRNewswire/ -- The Kroger Co. (NYSE: KR) today reported its second quarter 2025 results, updated guidance and shared progress on key priorities. Comments from Chairman and CEO Ron Sargent "Kroger delivered another quarter of strong results, which demonstrates the clear and measurable progress we've made on our priorities – to simplify our organization, to improve the customer experience and to focus on work that cre ...

Group 1 - The company reported first-quarter adjusted earnings per share of $1.49, exceeding the analyst consensus estimate of $1.46 [1] - Quarterly sales were $45.12 billion, slightly missing the expected $45.19 billion, with identical sales excluding fuel increasing by 3.2% [1] - Gross margin improved to 23% from 22% year-over-year, driven by the sale of Kroger Specialty Pharmacy, lower shrink, and reduced supply chain costs [2] Group 2 - The CFO expressed confidence in raising the guidance for identical sales excluding fuel to a range of 2.25% to 3.25%, despite the uncertain macroeconomic environment [3] - Following the earnings announcement, Kroger shares increased by 2.4% to $73.72 [3] - Analysts adjusted their price targets for Kroger, with Deutsche Bank raising it from $57 to $67, Telsey Advisory Group from $73 to $82, UBS from $66 to $74, Guggenheim from $73 to $78, and Morgan Stanley from $71 to $76 [5]

Core Insights - Kroger Co. reported mixed results for Q1 fiscal 2025, with revenues falling short of estimates and declining year over year, while earnings exceeded expectations and improved from the previous year [1][3] - Strong underlying performance was driven by solid sales in pharmacy, e-commerce, and fresh categories, leading management to raise its identical sales without fuel growth outlook [1][8] Financial Performance - Adjusted earnings were $1.49 per share, beating the Zacks Consensus Estimate of $1.45 and improving from $1.43 in the prior year [3][8] - Total sales were $45,118 million, down from $45,269 million year over year and below the Zacks Consensus Estimate of $45,383 million [3][4] - Excluding fuel and Kroger Specialty Pharmacy, total sales rose 3.7% year over year, with identical sales without fuel increasing by 3.2% [4] Margin and Cost Analysis - Gross margin expanded by 100 basis points to 23%, driven by the divestiture of Kroger Specialty Pharmacy, reduced shrink, and lower supply-chain expenses [5] - The Operating, General and Administrative rate increased by 63 basis points, attributed to the sale of Kroger Specialty Pharmacy and contributions to a multi-employer pension plan [6] Balance Sheet and Guidance - Kroger ended the quarter with cash of $340 million, total debt of $17,945 million, and shareholders' equity of $8,908 million [7] - The company reaffirmed its fiscal 2025 capital expenditure outlook of $3.6 billion to $3.8 billion and maintained adjusted free cash flow guidance of $2.8 billion to $3 billion [7] Future Outlook - For fiscal 2025, Kroger now expects identical sales without fuel to increase between 2.25% and 3.25%, up from the previous range of 2%-3% [8] - Adjusted earnings guidance remains between $4.60 and $4.80 per share, compared to $4.47 in fiscal 2024 [8]

Core Insights - Kroger reported a 3.2% growth in identical sales excluding fuel and an adjusted EPS of $1.49, up 4% for Q1 FY2025, while raising guidance for identical sales to 2.25%-3.25% for the fiscal year [1][9] Store Network Optimization - The company plans to close approximately 60 underperforming stores over the next 18 months, following a pause on annual real estate reviews during the failed merger with Albertsons [2] - This strategy aligns with the completion of 30 major store projects and anticipates an acceleration in new store openings targeting high-growth areas starting in FY2026 [2][3] E-Commerce Performance - E-commerce sales increased by 15% year over year, but the segment remains unprofitable despite improvements in operational efficiency [4][5] - The company acknowledges the need for further optimization or strategic partnerships to achieve sustainable profitability in e-commerce [5] Gross Margin and Pricing Strategy - FIFO gross margin rate, excluding fuel, increased by 79 basis points, aided by lower shrink and supply chain costs, despite challenges from lower-margin pharmacy sales [6] - The company implemented price reductions on over 2,000 items, which contributed to better sales and gross margin, demonstrating operational leverage [7] Future Outlook - Full-year guidance for identical sales excluding fuel has been raised to 2.25%-3.25%, with the second quarter expected to be at the midpoint of this range [9] - The completion of a $5 billion accelerated share repurchase program is targeted for Q3 FY2025, with plans to resume open market buybacks under a remaining $2.5 billion authorization [9]

Core Insights - Kroger reported solid first quarter results for 2025, with strong sales driven by pharmacy, eCommerce, and fresh products [2][3] - The company is focused on streamlining priorities and enhancing customer experience, which positions it well for future growth [3] Financial Performance - Identical sales without fuel increased by 3.2% compared to the previous year, while total company sales were $45.1 billion, slightly down from $45.3 billion [4][13] - Earnings per share (EPS) remained stable at $1.29, while adjusted EPS rose to $1.49 from $1.43 [3][4] - Operating profit for the quarter was $1,322 million, an increase from $1,294 million in the same period last year [4][46] - Gross margin improved to 23.0%, up from 22.0% year-over-year, primarily due to the sale of Kroger Specialty Pharmacy and lower supply chain costs [5][48] Operational Highlights - The FIFO gross margin rate increased by 79 basis points, attributed to the sale of Kroger Specialty Pharmacy and lower shrink [6][47] - The Operating, General and Administrative (OG&A) rate increased by 63 basis points, mainly due to the sale of Kroger Specialty Pharmacy and pension plan contributions [7] Strategic Initiatives - Kroger recognized a $100 million impairment charge related to the planned closure of approximately 60 stores, expecting modest financial benefits from these closures [8] - The company is committed to reinvesting savings from store closures into enhancing customer experience [8] Capital Allocation - Kroger anticipates strong free cash flow and plans to continue investing in the business while maintaining its investment-grade debt rating [9] - The company has initiated a $5 billion accelerated share repurchase program, expected to be completed by the third quarter of fiscal 2025 [10] Debt and Financial Ratios - Kroger's net total debt to adjusted EBITDA ratio is 1.69, up from 1.25 a year ago, with a target range of 2.30 to 2.50 [11][39] - The company maintains a strong balance sheet, providing opportunities for further investments and enhancing shareholder value [11] Guidance - The company raised its guidance for identical sales without fuel to a new range of 2.25% to 3.25% for the full year [14][17] - eCommerce sales saw a significant increase of 15% in the first quarter [13]

The Kroger Co. (KR) reported fourth-quarter fiscal 2024 results, with the top line missing the Zacks Consensus Estimate but the bottom line exceeding the same. However, both metrics declined year over year. Management announces guidance for fiscal 2025.Kroger’s fiscal 2024 results highlight the resilience of its value creation model, driving solid performance and strong free cash flow. Strategic investments have diversified the business, supporting sustainable growth. With a strengthened balance sheet, Krog ...

Core Insights - Kroger reported strong fourth quarter results for fiscal year 2024, exceeding expectations and demonstrating the strength of its business model and execution by its teams [3][4][10] - The company is positioned for long-term sustainable growth, focusing on enhancing customer experience through quality and low prices [3][24] Fourth Quarter Financial Results - Total sales for Q4 2024 were $34.3 billion, down from $37.1 billion in Q4 2023, with a 2.4% increase in identical sales excluding fuel [4][10] - Earnings per share (EPS) for Q4 2024 was $0.90, compared to $1.01 in Q4 2023, while adjusted EPS was $1.14, unchanged from the previous year [10][59] - Operating profit for Q4 2024 was $912 million, down from $1.194 billion in Q4 2023, with adjusted FIFO operating profit at $1.174 billion [10][62] - Gross margin improved to 22.7% in Q4 2024 from 22.3% in Q4 2023, primarily due to the sale of Kroger Specialty Pharmacy and lower shrink [5][14] Fiscal Year 2024 Financial Results - Total company sales for fiscal year 2024 were $147.1 billion, down from $150.0 billion in 2023, with a 1.5% increase in identical sales excluding fuel [13][14] - EPS for fiscal year 2024 was $3.67, up from $2.96 in 2023, while adjusted EPS was $4.47, down from $4.76 [9][59] - Operating profit for the year was $3.8 billion, compared to $3.1 billion in 2023, with adjusted FIFO operating profit at $4.7 billion [9][62] Digital Sales and Growth Initiatives - Digital sales grew by 11% in Q4 2024, with more than $13 billion in total digital sales for the year [10][24] - Kroger introduced over 900 new Our Brands items in 2024, including 370 fresh items, and launched new meal bundles to promote healthy eating [27][24] Capital Allocation and Share Repurchase - Kroger commenced a $5 billion accelerated share repurchase program, with 65.6 million shares repurchased during the quarter [19][24] - The company expects to continue generating strong free cash flow and plans to invest in business growth while maintaining its dividend [17][24] Guidance for Fiscal Year 2025 - Kroger anticipates identical sales growth of 2.0% to 3.0% for fiscal year 2025, with adjusted FIFO operating profit projected between $4.7 billion and $4.9 billion [26] - The company expects adjusted net earnings per diluted share to be in the range of $4.60 to $4.80, with adjusted free cash flow of $2.8 billion to $3.0 billion [26]