Kroger (KR) Q2 2025 Financial Results Summary

# Kroger Co. (KR) Q2 2025 Financial Results Summary

CINCINNATI, September 11, 2025 – The Kroger Co. (NYSE: KR) today reported its financial results for the second quarter of 2025. Here’s a summary of the key highlights and metrics from the report:

### Financial Performance
– **Identical Sales without Fuel**: Increased by **3.4%** compared to **1.2%** in Q2 2024.
– **Operating Profit**: Reached **$863 million**, up from **$815 million** in Q2 2024.
– **Earnings Per Share (EPS)**:
– Diluted EPS of **$0.91**, compared to **$0.64** a year earlier.
– Adjusted EPS of **$1.04**, compared to **$0.93** in Q2 2024.
– **eCommerce Sales**: Saw an increase of **16%** year-over-year.
– **Total Company Sales**: Stood at **$33.9 billion**, consistent from the same period last year, inclusive of **$718 million** from Kroger Specialty Pharmacy sales. Excluding fuel and the pharmacy sales, company sales increased by **3.8%** versus Q2 2024.

### Profit Margins
– **Gross Margin**:
– Improved to **22.5%** from **22.1%** a year ago.
– FIFO Gross Margin Rate: Increased by **39 basis points** (bps) year-over-year.
– **Operating, General, and Administrative (OG&A) Rate**:
– Slight decrease of **5 bps** from the prior year.

### Capital Allocation Strategy
– **Quarterly Dividend**: Kroger declared a quarterly dividend of **$0.35**, up from **$0.32** in Q2 2024.
– **Share Repurchase Program**: Engaged in a **$5 billion accelerated share repurchase program (ASR)** scheduled for completion in Q3 2025, under the context of a **$7.5 billion** share repurchase authorization.
– **Debt Management**: The net total debt to adjusted EBITDA ratio is at **1.63**, compared to **1.24** a year ago.

### Updated Guidance for 2025
– **Same-Store Sales without Fuel**: Updated guidance range raised to **2.7% to 3.4%**.
– **Operating Profit Guidance**: Now expected to be between **$4.8 billion to $4.9 billion**.
– **EPS Guidance**: Adjusted to **$4.70 to $4.80**.
– **Free Cash Flow**: Expected maintenance at **$2.8 billion**.

### Highlights from Leadership
– **Ron Sargent, Chairman and CEO**, emphasized strong results indicating significant advancements on priorities focusing on organizational simplification and enhanced customer experience.
– **David Kennerley, CFO**, noted the strong sales growth, particularly from pharmacy, eCommerce, and Fresh sectors.

### Conclusion
Kroger’s Q2 2025 financial results demonstrate a solid performance with substantial year-over-year growth in both sales and earnings. The strategic initiatives in place appear to bolster the company’s operational effectiveness, leading to enhanced profitability while maintaining obligations to shareholders through dividends and share repurchase programs.

Note: Certain percentages may not sum due to rounding.