Kroger (KR) Stock: Q4 Sales Rise 2.4% as eCommerce Growth Hits 20%

TLDR

• Kroger stock slips 0.95% to $67.99 after reporting steady Q4 sales growth
• Q4 identical sales rise 2.4% as digital sales jump 20% year over year
• Kroger posts $1.246B operating profit with $1.35 earnings per share
• Full year eCommerce sales exceed $16B, boosting overall revenue growth
• Kroger forecasts up to $5.2B operating profit for fiscal year 2026

The Kroger Co. (KR) shares traded at $67.99 on Thursday, slipping 0.95% after the retailer released fiscal 2025 results. The company reported steady sales growth and strong digital expansion during the fourth quarter. Meanwhile, management issued fiscal 2026 guidance that targets moderate sales growth and higher profitability.

The Kroger Co., KR

Fourth Quarter Performance Shows Sales Growth and Digital Momentum

Kroger reported identical sales growth of 2.4% without fuel during the fourth quarter of fiscal 2025. The increase reflected steady grocery demand and improved customer activity across stores and digital platforms. The retailer strengthened its market share in several key product categories.

Operating profit reached $1.246 billion during the quarter, while earnings per share totaled $1.35. Adjusted FIFO operating profit came in at $1.206 billion with adjusted earnings per share of $1.28. These results highlighted operational efficiency and disciplined cost management across the company’s retail network.

Additionally, Kroger recorded strong digital growth during the quarter as eCommerce sales increased 20%. Online grocery demand continued rising as the company expanded delivery and pickup services. Therefore, Kroger strengthened its digital retail presence while improving the profitability of its online operations.

Fiscal 2025 Results Reflect Operational Efficiency and Strategic Execution

For the full fiscal year, Kroger posted identical sales growth of 2.9% excluding fuel. The company maintained stable consumer demand while adjusting product pricing and improving inventory management. As a result, Kroger supported steady revenue performance across its national store footprint.

Annual operating profit reached $1.9 billion while reported earnings per share stood at $1.54. Meanwhile, adjusted FIFO operating profit totaled $4.9 billion with adjusted earnings per share of $4.85. These figures demonstrated improved operating margins and disciplined financial management during fiscal 2025.

Digital expansion also contributed significantly to the company’s annual performance. Kroger reported eCommerce sales exceeding $16 billion during the fiscal year. Alternative profit businesses generated $1.5 billion in operating profit across advertising, data analytics, and retail media services.

2026 Outlook Targets Higher Profitability and Continued Investment

Kroger expects identical sales growth between 1.0% and 2.0% for fiscal 2026 excluding fuel. The company also projects FIFO operating profit between $5.0 billion and $5.2 billion. These targets indicate steady revenue growth and improving operating efficiency across the retail network.

Management also forecasts earnings per share between $5.10 and $5.30 for fiscal 2026. Free cash flow may range from $2.7 billion to $2.9 billion during the year. Meanwhile, capital expenditures could reach between $3.8 billion and $4.0 billion to support infrastructure and digital expansion.

The company continues strengthening its financial position while managing shareholder returns. Kroger completed a $7.5 billion share repurchase authorization during fiscal 2025. The board approved another $2 billion share repurchase program for fiscal 2026.

Kroger also advanced strategic initiatives to improve long term profitability and operational productivity. The company completed an eCommerce strategic review expected to deliver $400 million operating profit improvement in 2026. Kroger aims to enhance customer value while expanding digital capabilities and improving margins across its grocery business.

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