#United States #Kroger #Cincinnati #Fiscal Year #Fourth Quarter

Kroger Reports Strong Results for Q4 and Full-Year 2024

Kroger Co., one of America’s largest grocery chains, has recently announced its financial results for the fourth quarter and fiscal year 2024. The report highlights notable increases in sales and operational profit, alongside projections for continued growth in 2025.

Fourth Quarter Highlights

During the fourth quarter, Kroger experienced a 2.4% rise in identical sales, excluding fuel, reflecting a $912 million operating profit and earnings per share (EPS) of $0.90. Notably, the adjusted FIFO (First-In, First-Out) operating profit stood at $1.174 billion, with an adjusted EPS of $1.14. The company's digital sales also rose impressively by 11%, excluding the additional week in 2023.

Full Fiscal Year Insights

For the entire fiscal year 2024, Kroger reported a 1.5% increase in identical sales without fuel, achieving an operating profit of $3.8 billion and EPS reaching $3.67. The adjusted FIFO operating profit was reported at $4.7 billion with an adjusted EPS of $4.47. Over the year, Kroger’s digital sales amounted to over $13 billion, demonstrating the company’s successful adaptation to changing consumer preferences and shopping behaviors. Moreover, the media segment saw an incredible 17% growth, contributing significantly to the overall operating profits.

Strategic Investments and Workforce Developments

Kroger has taken impactful steps in its workforce strategy, raising associate wages to an average hourly wage of over $19, which translates to more than $25 when considering comprehensive benefits. This initiative alone represents a staggering 38% wage increase over the past seven years. Furthermore, a $5 billion Accelerated Share Repurchase Program was announced to complement the existing $7.5 billion share repurchase authorization.

Comments from Leadership

Ron Sargent, Kroger's interim CEO, expressed enthusiasm about the company's trajectory. He remarked, “We are operating from a position of strength, and our results are a testament to our rigorous execution and operational models.” Sargent highlighted Kroger's commitment to elevating customer experiences through quality products at competitive prices as they advance into 2025 with a solid momentum.

Preparing for Future Growth

Kroger's capital allocation strategy includes strong free cash flow generation and continued investment in store growth. The company also aims to sustain its investment grade debt rating while maintaining its dividend schedule. Full-year 2025 forecasts are optimistic, projecting identical sales growth of 2.0% to 3.0% and adjusted FIFO operating profit of $4.7 to $4.9 billion.

Commitment to Community and Sustainability

In line with its corporate responsibility, Kroger has been actively involved in supporting communities impacted by natural disasters, such as the recent wildfires in Los Angeles. The company not only provided supplies but also monetary donations to those affected. Notably, Kroger has earned recognition as one of Newsweek’s “Most Responsible Companies for 2025,” underscoring the corporation's focus on sustainability and community engagement.

Conclusion

Kroger's results for 2024 reflect a robust operational framework, significant growth in digital sales, and a commitment to its workforce that positions it well for the future. As the business enters 2025, the focus remains on delivering exceptional value to customers while enhancing both shareholder returns and community impact.