Kroger Q4 Identical Sales +2.4%, Adjusted eCommerce Sales +20%
Kroger’s fourth quarter identical sales excluding fuel rose 2.4%, driving operating profit of $1.246 billion, EPS of $1.35 and a 20% increase in adjusted eCommerce sales. Fiscal 2025 saw 2.9% identical sales growth, $4.9 billion adjusted FIFO operating profit, $16 billion in eCommerce sales, $9.5 billion repurchase authorization and Greg Foran named CEO.
1. Fourth Quarter Financial Results
In Q4, total sales reached $34.7 billion, with identical sales excluding fuel up 2.4%. Operating profit was $1.246 billion, EPS $1.35 and adjusted EPS $1.28. Gross margin improved to 23.1%, and adjusted eCommerce sales surged 20%, reflecting sourcing improvements and stronger online demand.
2. Fiscal 2025 Performance
Full-year sales reached $147.6 billion, with identical sales excluding fuel up 2.9%. Adjusted FIFO operating profit grew to $4.9 billion and adjusted EPS to $4.85 despite a $2.5 billion impairment. eCommerce sales topped $16 billion and alternative profit businesses delivered $1.5 billion in operating profit.
3. 2026 Guidance and Strategic Initiatives
Kroger completed its eCommerce strategic review, targeting $400 million in operating profit improvement next year and a path to profitability. Focus areas include customer experience enhancements, cost savings and productivity gains to strengthen market share and value delivery.
4. Capital Allocation and Leadership
The board authorized $7.5 billion in share repurchases, executed a $5 billion accelerated program and approved an additional $2 billion in open market transactions. Greg Foran was appointed CEO to lead Kroger’s growth strategy and oversee further capital allocation decisions.