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The Kroger Co (MEX:KR) Gross Margin % : 23.08% (As of Jan. 2025)


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What is The Kroger Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. The Kroger Co's Gross Profit for the three months ended in Jan. 2025 was MXN163,382 Mil. The Kroger Co's Revenue for the three months ended in Jan. 2025 was MXN707,740 Mil. Therefore, The Kroger Co's Gross Margin % for the quarter that ended in Jan. 2025 was 23.08%.


The historical rank and industry rank for The Kroger Co's Gross Margin % or its related term are showing as below:

MEX:KR' s Gross Margin % Range Over the Past 10 Years
Min: 21.43   Med: 22.2   Max: 23.32
Current: 22.7


During the past 13 years, the highest Gross Margin % of The Kroger Co was 23.32%. The lowest was 21.43%. And the median was 22.20%.

MEX:KR's Gross Margin % is ranked worse than
52.6% of 308 companies
in the Retail - Defensive industry
Industry Median: 23.175 vs MEX:KR: 22.70

The Kroger Co had a gross margin of 23.08% for the quarter that ended in Jan. 2025 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for The Kroger Co was -0.10% per year.


The Kroger Co Gross Margin % Historical Data

The historical data trend for The Kroger Co's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Kroger Co Gross Margin % Chart

The Kroger Co Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.32 22.01 21.43 22.24 22.70

The Kroger Co Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.72 22.41 22.56 22.85 23.08

Competitive Comparison of The Kroger Co's Gross Margin %

For the Grocery Stores subindustry, The Kroger Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The Kroger Co's Gross Margin % Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, The Kroger Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where The Kroger Co's Gross Margin % falls into.


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The Kroger Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

The Kroger Co's Gross Margin for the fiscal year that ended in Jan. 2025 is calculated as

Gross Margin % (A: Jan. 2025 )=Gross Profit (A: Jan. 2025 ) / Revenue (A: Jan. 2025 )
=689070.5 / 3035000.366
=(Revenue - Cost of Goods Sold) / Revenue
=(3035000.366 - 2345929.879) / 3035000.366
=22.70 %

The Kroger Co's Gross Margin for the quarter that ended in Jan. 2025 is calculated as


Gross Margin % (Q: Jan. 2025 )=Gross Profit (Q: Jan. 2025 ) / Revenue (Q: Jan. 2025 )
=163381.7 / 707739.732
=(Revenue - Cost of Goods Sold) / Revenue
=(707739.732 - 544358.052) / 707739.732
=23.08 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


The Kroger Co  (MEX:KR) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

The Kroger Co had a gross margin of 23.08% for the quarter that ended in Jan. 2025 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


The Kroger Co Gross Margin % Related Terms

Thank you for viewing the detailed overview of The Kroger Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


The Kroger Co Business Description

Address
1014 Vine Street, Cincinnati, OH, USA, 45202
Kroger is one of the largest grocery retailers in the United States with more than 2,700 stores across a portfolio of over 20 supermarket banners. The company boasts an ingrained presence in US communities, citing that it is a top-two grocer in most of its major market areas. Over one fourth of Kroger's roughly $110 billion in nonperishable and fresh food sales (about 75% of revenue) stems from its private-label portfolio, of which the company manufactures about 30% of units via its own food production plants. The firm also operates fuel stations and pharmacies at 60% and 80% of its locations, respectively.