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Kroger's Financial Results: Fourth Quarter and Full-Year 2025

On March 5, 2026, Kroger Co. reported its financial achievements for the fourth quarter and the entire fiscal year of 2025, highlighting a promising outlook for 2026. With an operating profit of $1.9 billion and an impressive earnings per share (EPS) of $1.54, the company managed to navigate challenges while maintaining its market position.

Fourth Quarter Highlights

During the last quarter, Kroger experienced a 2.4% increase in identical sales without fuel.

• - Operating Profit: $1,246 million
• - EPS: $1.35
• - Adjusted FIFO Operating Profit: $1,206 million and Adjusted EPS of $1.28
• - Online sales saw a significant uptick with a 20% increase in adjusted eCommerce sales.

Kroger's total sales in this quarter reached $34.7 billion, up from $34.3 billion in the previous year. This robust growth can be attributed to improved sourcing, a decrease in supply chain costs, and enhanced product offerings.

Full-Year 2025 Review

For the fiscal year, Kroger reported identical sales growth of 2.9% without fuel, totaling $147.6 billion in sales compared to $147.1 billion in 2024. Despite facing challenges such as a $2.5 billion loss due to the automated fulfillment network, the company highlighted several metrics:

• - Total eCommerce Sales: Over $16 billion
• - Operating Profit: $1.9 billion
• - Adjusted FIFO Operating Profit: $4.9 billion with an Adjusted EPS of $4.85

The completion of an eCommerce strategic review is expected to yield $400 million in operating profit improvements in 2026, positioning Kroger for further growth.

CEO Insights

Kroger's CEO, Greg Foran, remarked on the company's resilience and dedication to enhancing customer value while striving for efficiency. "We are focused on improving our service delivery both in stores and online, while also driving productivity and cost savings. Our strong foundation positions us for future growth."

Financial Highlights

Fourth Quarter Results

• - Earnings Per Share: Increased to $1.35 from $0.90
• - Operating Profit: Grew to $1,246 million from $912 million
• - Gross Margin: Rose to 23.1% from 22.7%

Fiscal 2025 Overview

• - Earnings Per Share: Reported at $1.54 compared to $3.67 in 2024
• - Gross Margin: Increased to 22.9% compared to the previous year's 22.3%

Capital Allocation and Share Repurchase

Kroger continued its capital allocation strategy, completing a $7.5 billion share repurchase authorization which includes an additional $2 billion set for 2026, further enhancing shareholder value.

Looking Ahead: 2026 Guidance

For the upcoming year, Kroger projects identical sales growth without fuel to fall between 1.0% and 2.0%, setting a target for adjusted FIFO operating profit of $5.0 to $5.2 billion, and an EPS range of $5.10 to $5.30. These projections underscore a cautious yet optimistic approach while factoring in adjustments from the Inflation Reduction Act, which may impact overall sales performance.

In sum, Kroger's 2025 results reflect a year of solid performance amid challenges, and the company remains committed to its long-term growth strategy. They aim to leverage efficiencies and enhance customer services as they embark on 2026.