Kroger

KR Q2 2025 Earnings

Reported Sep 11, 2025 at 8:14 AM ET · SEC Source

Q2 25 EPS

$1.04

BEAT +4.25%

Est. $1.00

Q2 25 Revenue

$33.94B

MISS 0.62%

Est. $34.15B

vs S&P Since Q2 25

-9.1%

TRAILING MARKET

KR +0.5% vs S&P +9.6%

Market Reaction

Did KR Beat Earnings? Q2 2025 Results

Kroger delivered a stronger-than-expected second quarter of fiscal 2025, posting adjusted EPS of $1.04 against the $1.00 consensus, a 4.25% beat, even as total revenue of $33.94 billion came in just 0.62% shy of estimates and was essentially flat yea… Read more Kroger delivered a stronger-than-expected second quarter of fiscal 2025, posting adjusted EPS of $1.04 against the $1.00 consensus, a 4.25% beat, even as total revenue of $33.94 billion came in just 0.62% shy of estimates and was essentially flat year over year at +0.1%. The headline revenue figure, however, masks real underlying momentum: the comparison is distorted by the divestiture of Kroger Specialty Pharmacy, which contributed $718 million in the year-ago period, and excluding that drag alongside fuel, sales grew 3.8%. Identical sales without fuel accelerated sharply to 3.4% from 1.2% a year ago, driven by pharmacy, eCommerce, which surged 16%, and Fresh, while gross margin expanded to 22.5% from 22.1%. Net income jumped 30.7% to $609 million. Encouraged by the momentum, management raised full-year adjusted EPS guidance to $4.70–$4.80 and lifted the low end of its identical sales target to 2.7%–3.4%, a reassuring signal for investors who view Kroger as one of the more recession-resistant consumer staples names in the market.

Key Takeaways

  • Identical sales without fuel increased 3.4%
  • eCommerce sales increased 16%
  • Gross margin improved to 22.5% from 22.1% driven by Kroger Specialty Pharmacy divestiture, lower supply chain costs, and lower shrink
  • Pharmacy, eCommerce, and Fresh led sales growth
  • Encouraging improvement in grocery volumes
  • OG&A rate decreased 5 basis points excluding fuel and adjustment items due to improved productivity
  • FIFO gross margin rate increased 39 basis points excluding rent, D&A, fuel and adjustment items
24/7 Wall St

KR YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

“Kroger delivered another quarter of strong results, which demonstrates the clear and measurable progress we've made on our priorities – to simplify our organization, to improve the customer experience and to focus on work that creates the most value.”

— Ron Sargent, Q2 2025 Earnings Press Release