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Aug 16
Kroger Q2 2025 Earnings Report
Kroger reported steady revenue and earnings growth, supported by strong eCommerce performance and improved margins.
Key Takeaways
Kroger delivered solid results in Q2 2025 with consistent revenue of $33.9 billion and increased profitability. The company highlighted a 16% jump in eCommerce sales and raised its guidance, indicating confidence in its ongoing momentum.
Revenue held steady at $33.9 billion, excluding fuel and specialty pharmacy sales, up 3.8%.
Net income rose to $609 million, up from $466 million YoY.
Adjusted EPS improved to $1.04 from $0.93 a year earlier.
eCommerce sales grew 16%, reflecting digital strength.
Kroger
Kroger
Kroger Revenue by Geographic Location
Revenue by Geographic Location
United States Revenue
CapyFin.com Forward Guidance
Kroger raised the lower end of its FY25 EPS and identical sales guidance ranges, indicating optimism from recent sales momentum and cost improvements.
Positive Outlook
- Raised FY25 EPS guidance to $4.70–$4.80.
- Increased identical sales without fuel guidance to 2.7%–3.4%.
- Strong free cash flow projection of $2.8–$3.0 billion remains unchanged.
- Capex maintained at $3.6–$3.8 billion for reinvestment.
- Lower tax rate guidance at 22%, down from 23%.
Challenges Ahead
- Net total debt to adjusted EBITDA increased to 1.63 from 1.24 YoY.
- Pharmacy sales growth diluted margins despite overall improvement.
- Kroger Specialty Pharmacy sale impacted total revenue comparability.
- No specific international expansion or diversification updates.
- Continued headwinds from inflation and pricing pressures.