Kroger posts US$3.2B in adjusted earnings for fiscal 2025

USA – The Kroger Co. reported adjusted net earnings of US$3.2 billion, or US$4.85 per share, for fiscal 2025, surpassing analysts’ estimate of US$4.80 per share, even as overall net income fell to US$1.02 billion from US$2.67 billion a year earlier.

The decline in reported profits reflected US$1.91 billion in impairment and related charges tied to closures in Kroger’s e-commerce fulfillment network, while fourth-quarter adjusted earnings reached US$812 million, or US$1.28 per share, above the projected US$1.26.

Net sales edged up 0.4% to US$147.64 billion from US$147.12 billion in 2024, and when excluding fuel and divested pharmacy sales, full-year revenue grew 3%, with fourth-quarter sales rising 1.2% to US$34.73 billion.

Identical sales excluding fuel and adjustment items climbed 2.9% for the year, compared with 1.5% in 2024, including a 2.4% lift in the final quarter, supported by 20% growth in digital sales that pushed annual e-commerce revenue over US$16 billion.

The company’s private-label portfolio, Our Brands, contributed to growth with more than 1,100 new products in 2025, focused on quality, affordability, and health-conscious offerings, led by Simple Truth and Private Selection.

Kroger also invested in expansion, completing 29 major store projects in 2025 and planning to increase new openings by 30% in 2026, including entry into Jacksonville and Kansas City, which are expected to support long-term sales growth.

Ron Sargent, who led the earnings call, noted that Kroger achieved positive market-share gains in the fourth quarter and nearly doubled full-year identical sales without fuel from 1.5% to 2.9%, while adjusted earnings per share rose 9%.

Greg Foran, Kroger’s new CEO since February 2026, said he spent his first month learning the business by engaging with leadership, visiting stores and distribution centers, and observing customer behavior to translate strategic plans into operational results.

Foran highlighted that top-line growth depends on offering value through competitive pricing, quality products, and a consistent shopping experience in-store and online, and he plans to continue removing unproductive costs while investing in everyday value and promotions.

Looking ahead, Kroger expects fiscal 2026 identical sales growth of 1% to 2% and adjusted net earnings per share between US$5.10 and US$5.30, consistent with Wall Street projections of US$5.06 to US$5.50.

Foran said the company has the necessary elements for success, and that his role will be to coordinate initiatives to strengthen Kroger’s overall performance.

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