Overview

• Kroger posted adjusted EPS of $1.04 versus $0.99 expected on $33.94 billion in sales, with identical sales excluding fuel up 3.4% and eCommerce up 16%.
• The company raised FY25 adjusted EPS guidance to $4.70–$4.80 and narrowed its identical sales outlook to 2.7%–3.4%.
• Operating profit rose 5.9% to $863 million and gross margin improved to 22.5%, helped by the specialty pharmacy sale, lower supply-chain costs and reduced shrink; the LIFO charge was $62 million.
• Kroger said a $5 billion accelerated share repurchase should complete by Q3 FY25 and plans $2.5 billion in open-market buybacks by year-end, with net debt to adjusted EBITDA at 1.63, below its 2.30–2.50 target band.
• Management reported price cuts on more than 3,500 items year to date and aims to keep gross margin relatively flat, noted no material impact from tariffs, and flagged a backdrop of grocery CPI rising 0.6% month over month in August as shares ticked higher.