Kroger reported a solid finish to fiscal year 2025 with improving market share trends and sales growth, driven by strategic investments in value for customers and operational efficiencies. The company is focused on strengthening its foundation through enhanced customer experience, cost savings, and productivity to fund growth.
Identical sales without fuel increased 2.4% in Q4 2025, accelerating from prior periods.
positiveGross margin improved to 23.1% in Q4 2025 from 22.7% in the prior year, driven by sourcing improvements and lower supply chain costs.
positiveAdjusted EPS of $1.28 in Q4 2025 exceeded the prior year's $1.14.
positiveCompleted a $7.5 billion share repurchase authorization, including a $5 billion accelerated share repurchase program, and approved an additional $2 billion authorization.
positiveOperating, General and Administrative (OG&A) rate increased 21 basis points in Q4 2025 due to labor investments, partially offset by productivity gains.
attentionFull-year 2025 net earnings attributable to Kroger Co. were $1,016 million, a significant decrease from $2,665 million in 2024, impacted by $2.5 billion in impairment and related charges for the automated fulfillment network.
negativeInventories decreased slightly to $6,892 million from $7,038 million in the prior year, but still represent a significant portion of current assets.
attentionTotal company sales for FY2025 were $147.6 billion, a modest increase from $147.1 billion in FY2024, with excluding fuel and specialty pharmacy sales showing a 3.0% increase.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Kroger delivered a strong finish to the year, with improving market share trends and solid sales growth that reflect meaningful progress strengthening the business.
We have the right foundation in place, and I’m focused on making it even stronger by delivering more value to customers, improving the customer experience in stores and online, and driving cost savings and productivity to fund our growth.
For 2026, we expect identical sales without fuel growth of 1.0% to 2.0%, adjusted FIFO operating profit of $5.0 to $5.2 billion, and adjusted EPS of $5.10 to $5.30.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.