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May 24, 2025
Kroger Q1 2025 Earnings Report
Kroger reported stable earnings with improved margins in Q1 2025.
Key Takeaways
Kroger delivered steady earnings and improved profitability in Q1 2025, supported by growth in pharmacy, eCommerce, and fresh segments, despite slightly lower overall revenue compared to last year.
Adjusted EPS rose to $1.49, up from $1.43 in Q1 2024.
Total revenue slightly declined to $45.1B from $45.3B in the prior year.
Identical sales without fuel increased 3.2%.
Kroger booked a $100M impairment charge related to planned store closures.
Forward Guidance
Kroger reaffirmed most of its FY25 guidance but raised its identical sales growth forecast.
Positive Outlook
- Raised identical sales without fuel guidance to 2.25%-3.25%.
- Reaffirmed adjusted EPS forecast of $4.60–$4.80.
- Maintained capital expenditure guidance of $3.6–$3.8B.
- Continued commitment to dividend payments and share repurchases.
- Improved productivity helped mitigate higher expenses.
Challenges Ahead
- Macroeconomic uncertainty remains a concern.
- Store closures may affect short-term operations.
- Higher OG&A rates due to specialty pharmacy sale and pension contributions.
- Impairment charges impacted net income.
- No change in net total debt to EBITDA target despite increased debt.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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