On March 5^th The Kroger Company (KR) posted results for Q4 and FY 2025 ending January 31^st 2025. Kroger was two percent below consensus revenue and four percent below expectations for adjusted EBITDA but posted higher guidance for FY 2026.

 Kroger is the second largest retailer of groceries in the U.S. and is a pure supermarket play subject to the pressures of escalation in food costs, logistics and labor and the impact of inflation in common with all national and regional competitors.

For Q4 Kroger reported earnings of $861 million on sales of $34,725 million with a diluted EPS of $1.35. For the corresponding Q4 of FY 2024, Kroger earned $634 million on sales of $34,308 million with a diluted EPS of $0.90.  Comparing Q4 of 2025 with the corresponding quarter of FY 2024, sales were 1.2 percent higher; Gross margin increased from 23.1 percent for Q4 FY 2024 to 23.4 percent for the most recent quarter. Operating margin increased from 2.0 percent in Q4 2024 to 3.6 percent for Q4. For the last quarter in 2025 S&G was lower by $93 million compared to Q4 FY 2024. Improvements were attributed to reducing supply chain costs, improved sourcing and with lower shrink of inventory.

For FY 2025 Kroger reported earnings of $1,016 million on sales of $113,240 million with a diluted EPS of $1.54. For the corresponding FY 2024, Kroger earned $2,685 million on sales of $147,123 million with a diluted EPS of $3.67. During FY 2025 Kroger posted an impairment charge of $2,497 million attributed to the Ocada fulfillment network

In commenting on quarterly results in the press release, Greg Foran the newly appointed CEO stated “Kroger delivered a strong finish to the year, with improving market share trends and solid

sales growth that reflect meaningful progress in strengthening the business. He added

“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."

In addressing analysts Foran opined “It has been about a month since I started, and I’ve spent that time learning Kroger from the inside out. I’ve been spending time with the leadership team, having one-on-one conversations across the organization and getting out to the stores, distribution centers and manufacturing facilities — and, importantly, also watching how our customers shop”. He added “The team has done excellent work, particularly over the past year, to strengthen the business. And my focus is on how we ‘operationalize’ our strategy to make us even better.”

In discussing future developments, Foran pointed to private Kroger brands that experienced a solid quarter, he stated, “Excluding the impact of egg deflation, sales continue to outpace national brands. Simple Truth and Private Selection again led our growth, with customers continuing to choose these products because they deliver high quality and an affordable price. Innovation continues to be a priority. This year, we introduced more than 1,100 new Our Brands products, up from more than 900 last year. A growing number of these products are focused on health, an area where customer demand is growing, and the Our Brands portfolio is well-positioned to lead.”

The challenge facing Greg Foran will be to stabilize operations and implement envisaged improvements. Kroger is recovering from the turbulence, distractions and expenses associated with the thwarted acquisition of Albertsons. The move away from mechanized Ocada fulfillment centers of which 20 additional were planned will reduce unprofitable future capital commitment.

The Company released adjusted FY 2026 Guidance:- 

• Identical Store Sales growth of 1.0 to 2.0 percent excluding fuel,
• Adjusted EPS of $5.10 to $5.30.
• Adjusted FIFO Operating Profit of $5.0 billion to $5.2 billion.
• Capital expenditure of $3,800 to $4,000 million,

Comparable same-store sales for Q4 advanced by 2.4 percent (excluding fuel) compared to Q4 FY 2024; Digital sales were up by 20.0 percent;

On January 31^st 2025 Kroger posted total assets of $49,941 million, of which $3,403 million comprised goodwill and intangibles. Long-term debt and lease obligations amounted to $24,405 million.  

The Kroger Company had an intraday market capitalization of $43,440 million on March 6^th 2026.  The Company has traded over the past fifty-two weeks in a range of $58.60 to $74.90 with a 50-day moving average of $64.96. KR trades with a forward P/E of 12.8. On March 4^th 2026 KR closed at $66.02 pre-release but at 09H00 on March 5^th post-release share price rose 6.6 percent to $70.40, closing at $74.00.

Insiders hold 8.8 percent of equity with 79.2 percent held by institutions. On February 13^th 5.2 percent of the float was short.

Twelve-month trailing operating margin was 3.5 percent and profit margin 0.7 percent.  The Company generated a return on assets of 5.6 percent and 14.4 percent on equity

The Kroger Company operates approximately 2,750 stores (with 1,240 under the Kroger banner), but with a total of 25 banners in 35 states. In addition Kroger operates 2,270 pharmacies and 1,700 fuel centers, 34 food plants and 45 distribution centers.