Kroger Reports First Quarter 2025 Results and Updates Identical Sales without Fuel Guidance for 2025 | KR Stock News

Author's Avatar
Jun 20, 2025
Article's Main Image
  • Identical sales without fuel increased by 3.2% and eCommerce sales grew by 15%.
  • Kroger (KR, Financial) raised its 2025 identical sales guidance to 2.25-3.25%.
  • The company plans to close approximately 60 stores, resulting in a $100 million impairment charge.

Kroger Co. (KR) has released its financial results for the first quarter of 2025, showing notable performance and strategic moves. The company's identical sales without fuel increased by 3.2%, propelled by a 15% rise in eCommerce sales. Total sales for the period were reported at $45.1 billion.

In terms of profitability, Kroger achieved an operating profit of $1,322 million with earnings per share (EPS) at $1.29, while the adjusted EPS reached $1.49, up from $1.43 in the previous year. The company's gross margin also showed improvement, rising to 23.0% from last year's 22.0%.

Strategically, Kroger has announced plans to close roughly 60 underperforming stores over the next 18 months, resulting in a $100 million impairment charge. Despite the closures, the company expects these actions to eventually benefit its financial standing and plans to reinvest the savings back into enhancing the customer experience.

In line with its capital allocation strategy, Kroger is executing a $5 billion accelerated share repurchase program. Its net total debt to adjusted EBITDA ratio increased to 1.69 from 1.25 over the year, indicating an ongoing commitment to maintaining financial flexibility.

Most significantly, Kroger has updated its 2025 guidance for identical sales without fuel upward to a range of 2.25% to 3.25%, reflecting confidence in its growth trajectory despite prevailing macroeconomic challenges. Other guidance metrics, including the adjusted FIFO operating profit projected between $4.7 billion to $4.9 billion, and an adjusted EPS forecasted at $4.60 to $4.80, remain unchanged.

The company's CEO highlighted the solid performance stemming from strong sales in the pharmacy, eCommerce, and fresh departments, emphasizing Kroger's strategic focus on customer-centric enhancements and operational efficiencies.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.