What is the revenue and EPS growth rate for The Kroger year over year?

What were the key takeaways from The Kroger’s earnings call?

What guidance did The Kroger's management provide for the next earnings period?

What is The Kroger's gross profit margin?

What factors drove the changes in The Kroger's revenue and profit?

Did The Kroger beat or miss consensus estimates last quarter?

What is The Kroger's latest dividend and current dividend yield?

What does The Kroger do and what are its main business segments?

- **CEO Focus**: Accelerating growth through price investments, AI-driven efficiency, and e-commerce expansion (targeting $1.5B+ in 2026). 
- **Financial Highlights**: 2025 EPS up 9% to $4.85; 2026 guidance for 1-2% sales growth, $5-5.2B operating profit. 
- **Key Wins**: Q4 2025 first positive market share gain since 2021; e-commerce +20% Q4, Media profit up 100%. 
- **Strategic Moves**: $3.8-4.0B capex for new stores, remodels, and AI; $2B share buyback program. 
- **Risk Management**: Balancing price investments with cost savings (e.g., procurement, e-commerce efficiency) to protect margins.

**【CEO Summary Section】**
- Greg Foran emphasized accelerating top-line growth through competitive pricing, improved store execution, and e-commerce expansion. 
- Key priorities include: 
  - Investing in everyday value and promotions to close price gaps with competitors. 
  - Leveraging AI (e.g., Agentic shopping assistant) to enhance customer experience and operational efficiency. 
  - Expanding e-commerce via partnerships with DoorDash, Uber Eats, and Instacart, targeting $1.5B+ in 2026. 
  - Modernizing supply chain and procurement to reduce costs and reinvest in customer value. 

**【CFO Financial Commentary】**
- Q4 2025 results: 
  - Identical sales without fuel +2.4% (2.9% full year), driven by e-commerce (+20%), pharmacy, and Fresh categories. 
  - Adjusted EPS: $1.28 (Q4) / $4.85 (full year), up 12% / 9%. 
  - Gross margin (excl. fuel) improved 14bps vs. 2024, despite price investments. 
- 2026 guidance: 
  - Identical sales without fuel: 1-2% (excluding IRA headwind of ~130bps). 
  - Adjusted FIFO operating profit: $5-5.2B. 
  - Free cash flow: $2.7-2.9B. 
  - Capital expenditures: $3.8-4.0B, focused on new stores, remodels, and AI/technology. 

**【Q&A Highlights】**
- **Market Share & Pricing Strategy**: 
  - Q4 2025 marked first positive market share gain since 2021, driven by price investments and improved Fresh execution. 
  - 2026 plans include increased price investments (~$350M+), balanced with cost savings from procurement and e-commerce efficiency. 
- **AI & Productivity**: 
  - New AI leader Milen Mahadeley will drive initiatives like Agentic shopping assistant, with early results showing improved shrink, labor scheduling, and e-commerce profitability. 
- **E-commerce Growth**: 
  - Hybrid fulfillment model (store-based + 3rd-party delivery) targets 20%+ growth in 2026, with Media business expected to deliver double-digit profit growth. 
- **Competitive Response**: 
  - Management believes Kroger's Fresh, Our Brands, and omnichannel capabilities create a defensible value proposition, reducing risk of price wars. 


The Kroger Co.(KR)-20260305-2026 Q4 Earnings call transcript

- **E-commerce Turnaround**: Kroger's e-commerce business will be profitable in 2026, with $400 million in savings from closing underperforming fulfillment centers and leveraging third-party delivery partnerships.
- **Store Expansion Acceleration**: 14 new stores to break ground in Q4 and 30%+ growth in 2026 builds, targeting high-potential markets like Jacksonville, FL.
- **Profitability Improvements**: Gross margin up 49 bps, operating profit up 7%, and free cash flow strength supporting share buybacks ($2.5B remaining).
- **Customer Trends**: Middle-income households cutting discretionary spending, but natural/organic and e-commerce categories outperforming.
- **Strategic Investments**: AI workforce tools, media partnerships, and price promotions driving customer loyalty and efficiency.

**【CEO Summary Section】**
- Kroger delivered Q3 2025 revenue growth of 2.6% YoY, driven by strong e-commerce (17% growth) and pharmacy performance. E-commerce sales were boosted by third-party delivery partnerships (Instacart, DoorDash, Uber Eats), with 1 million orders fulfilled in the first month of the DoorDash partnership.
- The company announced the closure of 3 underperforming automated fulfillment centers, shifting to a hybrid model leveraging store-based fulfillment. This change is expected to improve e-commerce profitability by $400 million in 2026, making the e-commerce business profitable.
- Kroger is accelerating store expansion, with plans to break ground on 14 new stores in Q4 and a 30% increase in new store builds in 2026. The Harris Teeter banner will expand into Jacksonville, Florida.
- The company is investing in AI tools for workforce management and store operations, improving associate flexibility and customer service metrics.
- Customer trends show middle-income households are reducing discretionary spending, while higher-income customers continue to spend strongly. Food inflation and SNAP benefit pauses impacted Q3 sales, but identical sales on a 2-year stack basis grew 4.9%.

**【CFO Financial Commentary】**
- Adjusted FIFO operating profit was $1.1 billion, up 7% YoY, with adjusted EPS of $1.05. Gross margin improved 49 basis points due to brand performance and lower supply chain costs, offset by pharmacy mix effects.
- Operating expenses increased 27 basis points due to wage investments and pension contributions, but LIFO charges of $44 million impacted EPS by $0.04.
- E-commerce profitability improved sequentially, with pickup and delivery margins enhancing. Media business growth and third-party partnerships are creating new monetization opportunities.
- Free cash flow remained strong, with net debt/EBITDA ratio at 1.73, below the target range of 2.3-2.5. Share buybacks are expected to complete the remaining $2.5 billion authorization by year-end.
- Guidance updated: identical sales without fuel growth narrowed to 2.8-3.0%, and EPS raised to $4.75-$4.80, reflecting $0.07 LIFO headwind.

**【Q&A Key Highlights】**
- **Store Expansion & Capital Allocation**: Kroger is reallocating capital to new stores (30% increase in 2026 builds) and away from underperforming e-commerce infrastructure. Jacksonville, FL expansion targets middle-income growth markets.
- **CEO Search Progress**: Board expects to announce an external CEO in Q1 2026, prioritizing retail transformation experience and cultural fit.
- **E-commerce Profitability**: $400 million savings from fulfillment center closures will fund price investments, store upgrades, and margin expansion. Media partnerships with third-party delivery apps are driving incremental revenue.
- **Pharmacy Headwinds**: Inflation Reduction Act will reduce Q4 identical sales by 30-40 basis points but has no margin impact due to manufacturer rebates.
- **Competitive Environment**: Kroger is maintaining market share through promotions and brand differentiation, with 1,000 price reductions in Q3 and strong performance in natural/organic categories.


The Kroger Co. (KR) Q3 2026 Earnings Call Transcript

- **Sales Growth Accelerates**: 3.4% identical sales growth (excluding fuel) driven by pharmacy, e-commerce, and fresh categories, with 16% e-commerce sales growth.
- **Price Strategy Succeeds**: 3,500 products with lower prices improve customer perception, while AI reduces shrink by 10% and maintains margin neutrality.
- **E-commerce Profitability**: Delivery outpaces pickup, with 97% of stores offering 2-hour delivery; strategic review of KAFCs to enhance profitability.
- **Cost Optimization**: 5 basis point improvement in OG&A rate, $5 billion ASR program, and 9% dividend increase reflect financial strength.
- **Sustainability Focus**: 60 unprofitable stores closed, 1,000 corporate jobs reduced, and 30 new stores planned for 2025 to balance cost-cutting and growth.

**【CEO Summary Section】**
- Kroger reported 3.4% growth in identical sales without fuel, driven by pharmacy, e-commerce, and fresh categories. This marks the sixth consecutive quarter of improvement.
- Management emphasized strategic price investments, with 3,500 products seeing lower prices, and a focus on simplifying promotions to improve customer perception.
- E-commerce sales grew 16%, with delivery outpacing store pickup for the first time, leveraging the store network for faster fulfillment.
- AI initiatives are reducing shrink and improving operational efficiency, with plans to expand into customer personalization and planogramming.
- New store openings are accelerating, with 30 projects in 2025 and a 30% increase in 2026 to support in-store and online growth.

**【CFO Financial Commentary】**
- FIFO gross margin rate (excluding rent, depreciation, and fuel) increased 39 basis points year-over-year, driven by lower supply chain costs and reduced shrink, though partially offset by pharmacy mix.
- Operating, general, and administrative (OG&A) rate improved by 5 basis points, reflecting cost optimization efforts and productivity gains.
- Adjusted EPS rose 12% to $1.04, with free cash flow supporting a $5 billion ASR program and dividend increases.
- E-commerce profitability improved, with delivery orders fulfilled from stores and centralized fulfillment centers, though fuel sales declined due to lower prices and volumes.

**【Q&A Highlights】**
- **E-commerce Strategy**: Plans to leverage stores for faster delivery, with 97% of stores offering 2-hour delivery. Strategic review of Kroger Automated Fulfillment Centers (KAFCs) will focus on profitability and customer demand density.
- **Price Investments**: 3,500 products with lower prices to close gap with competitors, balanced with margin-neutral strategies like cost optimization and AI-driven efficiency.
- **Inflation and Volume**: Grocery volume improvement in fresh categories, with unit growth offsetting moderate inflation. Full-year guidance raised to 2.7%-3.4% for identical sales without fuel.
- **AI and Sourcing**: AI tools reducing shrink by 10% and improving inventory accuracy. Sourcing initiatives targeting $1 billion+ in cost savings across COGS and indirect expenses.
- **Pharmacy Growth**: Script volume up 10%, with focus on integrating pharmacy into the broader retail experience to drive incremental shoppinging and loyalty.


The Kroger Co. (KR) Q2 2025 Earnings Call Transcript

- **Revenue Growth**: 3.2% identical sales (excl. fuel), 15% e-commerce growth, 7th straight quarter of Our Brands outperformance.
- **Strategic Moves**: Closing 60 stores, accelerating new store openings, restructuring e-commerce under Yael Cosset.
- **Profitability**: 79 bps FIFO gross margin improvement, best e-commerce profit gain on record.
- **Customer Focus**: Lower prices, simplified promotions, AI tools for associates, record retention rates.
- **Guidance Update**: Raised sales guidance to 2.25%-3.25% YoY, reaffirmed financial targets despite fuel headwinds.

**【CEO Opening Remarks】**
- Emphasized priorities: long-term growth, accelerating sales, and running great stores.
- Invested in core business, cost reduction, and leadership restructuring (e.g., new e-commerce unit, division presidents).
- Q1 results: 3.2% identical sales growth (excluding fuel), $1.49 EPS, and 15% e-commerce growth.
- Plans to close 60 underperforming stores over 18 months to reinvest savings into customer experience.

**【CEO Commentary】**
- **Fresh Categories**: Strong performance, with fresh sales outpacing center store.
- **Our Brands**: 7th consecutive quarter of outperforming national brands, Simple Truth protein line expansion.
- **E-commerce**: 15% growth, focus on delivery accuracy and pickup wait times.
- **Store Network**: 30 major store projects in 2025, accelerating openings in high-growth areas.
- **Associate Retention**: Record retention rates due to wage increases, benefits, and AI tools.

**【CFO Financial Commentary】**
- **Gross Margin**: 79 basis point increase (73 bps excluding specialty pharmacy sale), driven by lower shrink and supply chain costs.
- **Cost Optimization**: $1 billion annual savings target, modernizing operations and processes.
- **E-commerce Profitability**: Best quarterly improvement, focusing on density, tech, and media growth.
- **Fuel Headwinds**: Lower sales and profitability due to price and volume declines.
- **Guidance Update**: Raised identical sales guidance to 2.25%-3.25% YoY, reaffirmed net operating profit and EPS targets.

**【Q&A Highlights】**
- **Pricing Strategy**: Simplified promotions, 2,000+ price cuts, margin-neutral investments.
- **E-commerce Roadmap**: Accelerate profitability, improve customer experience, expand delivery.
- **Store Closures**: Minimal financial impact, associates rehired in other locations.
- **Market Share**: Gains in new store markets, e-commerce growth, and Our Brands expansion.
- **Regulatory Impact**: Minimal tariff impact, focus on healthy product innovation.


The Kroger Co. (KR)-20 Jun 25-2026 Q1 Earnings call transcript

- **2024 Strong Execution**: 1.5% identical sales growth, 32bp gross margin expansion, and $4.47 EPS. 
- **2025 Growth Ambition**: 2-3% sales growth, 30 new stores, and accelerating digital/alternative profit. 
- **Digital Profitability Breakthrough**: Q4 saw best-ever sequential margin improvement. 
- **Our Brands Dominance**: 90%+ households purchase private-label items, driving margin. 
- **Shareholder Returns**: $7.5B buyback program underway, with 1.79x debt/EBITDA. 
- **Inflation Resilience**: 1.5-2.5% guidance, with proactive sourcing to mitigate egg/beef inflation. 
- **Leadership Transition**: CEO search underway, with internal/external candidates under consideration. 


**【CEO Summary Section】**
- Kroger delivered 1.5% identical sales growth in 2024, driven by strong performance in core grocery, pharmacy, and digital channels. 
- 2025 guidance includes 2-3% identical sales growth, with a focus on expanding digital households and alternative profit businesses. 
- The company is accelerating new store openings, targeting 30 major projects in 2025, to strengthen market share and customer engagement. 
- A new CEO search is underway, with a focus on identifying a leader capable of driving long-term growth and shareholder value. 

**【CFO Financial Commentary】**
- 2024 adjusted EPS of $4.47, with 1.5% identical sales growth excluding fuel, and 10% digital sales growth. 
- Gross margin improved 32 basis points due to Our Brands expansion (90%+ households purchasing private-label items) and lower pharmacy costs. 
- Operating expenses rose 31 basis points due to higher associate wages and incentive costs, but remain leveraged to sales growth. 
- 2025 guidance includes $4.7-4.9B adjusted FIFO operating profit and $4.60-4.80 EPS, with flat margin rates ex-special items. 

**【Q&A Key Highlights】**
- **Digital Profitability**: Q4 saw best-ever sequential improvement in digital margins, driven by cost reductions in pickup and delivery. 
- **Alternative Profit Growth**: Media business up 17% in 2024, with 2025 seeing stronger advertiser commitments. 
- **Inflation Expectations**: 1.5-2.5% in 2025, with eggs and proteins facing outsized pressures. 
- **Share Repurchases**: $5B ASR completed by Q3 2025, with $2.5B remaining for open market buys. 
- **Own Brands Expansion**: 900+ new SKUs in 2024, focusing on premium Private Selection and opening price points. 
- **SNAP Risk Management**: Proactive monitoring of potential cuts, with flexibility to adjust pricing strategies. 

**【Operational Strengths】**
- Associate retention at record levels, with average hourly wage >$19 and comprehensive benefits package. 
- AI tools (e.g., virtual assistant, generative AI for inventory) improving store efficiency and customer experience. 
- Strong balance sheet (1.79x debt/EBITDA) supporting growth investments while maintaining dividend discipline. 

**【2025 Outlook】**
- Core business to drive 2-3% sales growth, with alternative profit businesses contributing incremental margin expansion. 
- Digital sales to exceed $13B, with focus on improving profitability through automation and density. 
- New store openings to accelerate beyond 2025, targeting high-growth geographies. 


Actual														0.57			0.71	0.81			0.78	0.91			0.88	0.99			0.95	1.34			0.98	1.14			1.05	1.28
Forecast														0.5557			0.6667	0.6888			0.6665	0.7389			0.8254	0.9048			0.9068	1.1325			0.9735	1.1127			1.0311	1.2011
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+2.57%	0.00%	0.00%	+6.49%	+17.60%	0.00%	0.00%	+17.03%	+23.16%	0.00%	0.00%	+6.61%	+9.42%	0.00%	0.00%	+4.76%	+18.32%	0.00%	0.00%	+0.67%	+2.45%	0.00%	0.00%	+1.83%	+6.57%

Actual	--	--	--	--	--	--	--	--	--	--	--	--	--	28.89B	--	--	29.70B	30.74B	--	--	31.86B	33.05B	--	--	34.20B	34.82B	--	--	33.96B	37.06B	--	--	33.63B	34.31B	--	--	33.86B	34.73B
Forecast	--	--	--	--	--	--	--	--	--	--	--	--	--	28.87B	--	--	29.97B	30.82B	--	--	31.20B	32.68B	--	--	33.99B	35.03B	--	--	33.90B	37.07B	--	--	34.19B	34.57B	--	--	34.19B	34.96B
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+0.09%	0.00%	0.00%	-0.89%	-0.28%	0.00%	0.00%	+2.13%	+1.13%	0.00%	0.00%	+0.60%	-0.58%	0.00%	0.00%	+0.16%	-0.01%	0.00%	0.00%	-1.64%	-0.77%	0.00%	0.00%	-0.97%	-0.67%

KR

KR fundamentals

KR Q4 2026 Earnings

Earnings Call

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KR

KR fundamentals

KR Q4 2026 Earnings

Earnings Call

KR Earnings Call Summary for Q4/20268:00 AM on Mar 5, 2026

KR Earnings Call Summary for Q3/202610:00 AM on Dec 4, 2025

KR Earnings Call Summary for Q2/202610:00 AM on Sep 11, 2025

KR Earnings Call Summary for Q1/202610:00 AM on Jun 20, 2025

KR Earnings Call Summary for Q4/202510:00 AM on Mar 6, 2025

You can ask Aime