Kroger Raises Full-Year Sales Forecast After Strong First-Quarter Results
Kroger reported its financial results for the first quarter of 2025, showing a 3.2% increase in identical sales excluding fuel, and adjusted earnings per share (EPS) of $1.49. While revenue for the quarter was slightly below Wall Street expectations, adjusted profit exceeded analyst estimates.
The company also raised its full-year outlook for identical sales (excluding fuel), now expecting growth between 2.25% and 3.25%. E-commerce sales rose 15% compared to the previous year.
Kroger noted that changing consumer habits are impacting its results. Shoppers are choosing to cook more meals at home, buying larger pack sizes, and focusing on lower-priced items. The grocery chain's executives highlighted strength in its pharmacy and fresh foods departments.
Despite challenges in the retail environment and competition from rivals such as Walmart and Costco, Kroger's shares gained up to 10% following the earnings release.
This measures sales growth at existing stores by comparing results to the previous year, but does not include gasoline sales. It helps show how well the grocery business is doing without the impact of changing fuel prices.
Kroger's profits and e-commerce sales were better than expected, and the company raised its full-year sales forecast, which gave investors confidence.
Many customers are choosing to buy more groceries to cook at home, searching for lower-priced items, and buying larger sizes or using more coupons.
Kroger's e-commerce sales increased by 15% year over year in the first quarter of 2025.
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