KR Latest Report

Financial Performance Review

Based on the latest financial data, Kroger (stock code: KR) had a total operating revenue of $34.308 billion on February 1, 2025. Although there is no corresponding data for 2024 for a year-on-year analysis, the change in operating revenue can be speculated through the analysis of other financial indicators and industry trends.

Key Financial Data

1. Kroger's sales in the third quarter of 2024 were $33.634 billion, down 1.0% year-on-year.

2. Despite the decline in sales, Kroger expects full-year same-store sales to grow by 1.20%-1.50%.

3. Net profit attributable to the Company was $618 million, down 4.3% from $646 million in the same period last year.

4. Kroger's e-commerce channel sales grew by 11%, with delivery sales up 18%.

5. According to data from January to November 2024, retail and food service sales in the United States grew 3.80% year-on-year.

Peer Comparison

1. Industry-wide analysis: The overall retail industry experienced a recovery in 2024, with consumer spending rebounding, especially in the food and household goods sectors. It is expected that the growth rate of the retail industry will remain stable in 2025, and Kroger, as a leader in the industry, should benefit from this trend.

2. Peer evaluation analysis: Compared with other companies in the industry, Kroger's operating revenue performance may be better than some of its competitors. Although Walmart's operating revenue is massive, its growth rate may be limited by market saturation, while Kroger's business model focusing on food and household goods may bring higher growth potential. Through comparison, Kroger may be at the forefront of operating revenue growth.

Summary

Kroger faced certain market challenges in 2024, especially the decline in sales mainly due to the sale of its professional pharmacy business and a decrease in fuel sales. However, the strong growth in the e-commerce channel and confidence in future market strategies may provide a good foundation for the improvement of operating revenue in the future.

Opportunities

1. The construction of the e-commerce channel and growth in digital sales provide future expansion space.

2. Improving the efficiency of customer fulfillment centers will further enhance the consumer experience and attract more customers.

3. By selling inefficient businesses, Kroger can focus its resources on more promising business areas, improving overall operating revenue.

4. Kroger will benefit from the stable growth in consumer demand for food and household goods.

Risks

1. The intensification of market competition, especially from large retailers such as Walmart and Amazon, may affect Kroger's market share.

2. If the future market environment deteriorates, it may lead to a decline in consumer spending and affect operating revenue.

3. The decline in sales in 2024 may indicate potential risks in the Company's response to market changes.

4. The rapid development of the e-commerce channel brings opportunities but also requires Kroger to continuously invest in technology and operations, increasing operating costs.