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Feb 01, 2025
Kroger Q4 2024 Earnings Report
Kroger reported revenue decline but improved gross margin in Q4 2024.
Key Takeaways
Kroger's Q4 2024 revenue totaled $34.3 billion, down from $37.1 billion in the previous year, impacted by the absence of the 53rd week and the sale of Kroger Specialty Pharmacy. Identical sales without fuel increased by 2.4%. Operating profit stood at $912 million, while diluted EPS came in at $0.90. Adjusted EPS was $1.14, matching last year's figure after adjusting for the 53rd week. The company also improved its gross margin to 22.7%.
Revenue declined to $34.3 billion, reflecting the absence of the 53rd week and sale of Kroger Specialty Pharmacy.
Identical sales excluding fuel increased by 2.4%.
Gross margin improved to 22.7% from 22.3% last year.
Adjusted EPS remained steady at $1.14 after excluding the 53rd week.
Forward Guidance
Kroger expects moderate sales growth and steady profitability in FY 2025, with a focus on digital expansion and operational efficiencies.
Positive Outlook
- Identical sales growth excluding fuel projected between 2.0% and 3.0%.
- Adjusted EPS expected between $4.60 and $4.80.
- Continued expansion of digital sales and delivery services.
- Ongoing investment in cost savings and efficiency improvements.
- Capital expenditures planned between $3.6 billion and $3.8 billion.
Challenges Ahead
- Potential headwinds from inflation and economic uncertainty.
- Pharmacy margins remain under pressure.
- Continued integration costs from business divestitures.
- Higher incentive plan costs impacting operating expenses.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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