Particle.news
Download on the App Store

Kroger Posts Solid Q4 as Digital Sales Jump 20% and $2.5 Billion Charge Skews Full-Year Profit

Guidance factors in pharmacy reimbursement pressure under the Inflation Reduction Act.

Overview

  • Q4 identical sales rose 2.4% excluding fuel as eCommerce grew 20%, with operating profit of $1.246 billion and GAAP EPS of $1.35.
  • For fiscal 2025, Kroger reported operating profit of $1.9 billion and GAAP EPS of $1.54, reflecting a $2.5 billion impairment tied to its automated fulfillment network.
  • Adjusted results showed stronger underlying performance, including FIFO operating profit of $4.9 billion and adjusted EPS of $4.85 for the year.
  • Digital scale deepened with more than $16 billion in full-year eCommerce sales, while high-margin alternative profit businesses contributed about $1.5 billion in operating profit.
  • Management completed a digital review targeting roughly $400 million of operating profit improvement in 2026, issued guidance of 1%–2% identical sales growth and $5.10–$5.30 EPS, and followed a $7.5 billion buyback with a new $2 billion authorization.