European Investor
04 Dec 2025, 14:23
Kroger posts solid Q3 sales growth but books large impairment-related loss
Kroger reported third quarter 2025 results showing steady sales momentum and strong eCommerce performance, while a previously announced 2.6 billion dollar impairment charge tied to its automated fulfillment network pushed the company to a net loss.
Identical sales without fuel rose 2.6 percent, and total quarterly sales reached 33.9 billion dollars, up from 33.6 billion dollars a year earlier. eCommerce sales grew 17 percent. The impairment charge drove an operating loss of 1.541 billion dollars and a loss of 2.02 dollars per share. Excluding this impact, adjusted EPS was 1.05 dollars and adjusted FIFO operating profit rose to 1.089 billion dollars.
Gross margin improved to 22.8 percent, supported by the sale of Kroger Specialty Pharmacy, stronger Our Brands performance, lower supply chain costs, and reduced shrink. Kroger reaffirmed its focus on customer experience and long-term growth and said it expects its eCommerce business to turn profitable in 2026.
The company completed a 5 billion dollar accelerated share repurchase program and continues open-market buybacks under its remaining 2.5 billion dollar authorization. Kroger reiterated its commitment to maintaining an investment-grade balance sheet, continuing its dividend, and sustaining long-term earnings growth.
Kroger reported third quarter 2025 results showing steady sales momentum and strong eCommerce performance, while a previously announced 2.6 billion dollar impairment charge tied to its automated fulfillment network pushed the company to a net loss.
Identical sales without fuel rose 2.6 percent, and total quarterly sales reached 33.9 billion dollars, up from 33.6 billion dollars a year earlier. eCommerce sales grew 17 percent. The impairment charge drove an operating loss of 1.541 billion dollars and a loss of 2.02 dollars per share. Excluding this impact, adjusted EPS was 1.05 dollars and adjusted FIFO operating profit rose to 1.089 billion dollars.
Gross margin improved to 22.8 percent, supported by the sale of Kroger Specialty Pharmacy, stronger Our Brands performance, lower supply chain costs, and reduced shrink. Kroger reaffirmed its focus on customer experience and long-term growth and said it expects its eCommerce business to turn profitable in 2026.
The company completed a 5 billion dollar accelerated share repurchase program and continues open-market buybacks under its remaining 2.5 billion dollar authorization. Kroger reiterated its commitment to maintaining an investment-grade balance sheet, continuing its dividend, and sustaining long-term earnings growth.