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Kroger 8-K Report, Financial Results (Dec 4, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed December 4, 2025
Period End
December 4, 2025
Security
KR
In the record · 2016–202610-K1210-Q328-K137

KR filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 137 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Aug ’17Aug ’17
  2. Leadership change8-K · Dec ’19Dec ’19
  3. Material agreement8-K · Nov ’22Nov ’22
  4. Leadership change8-K · Feb ’25Feb ’25

01—Abstract

Summary

Summary of the 8-K filed December 4, 2025. Cited figures are marked; the original filing is the authoritative source.

The Kroger Co. (NYSE: KR) reported third quarter 2025 results on December 4, 2025, and updated its full-year 2025 guidance.

Sales were $33.9 billiona versus $33.6 billion a year earlier, and identical sales without fuel rose 2.6%. The company posted an operating loss of $(1,541) million and a loss per diluted share of $(2.02), driven by $2.6 billion in previously announced impairment and related charges ($3.00 loss per share) tied to its automated fulfillment network. Excluding adjustment items, adjusted FIFO operating profit was $1,089 million and adjusted EPS was $1.05, compared with $1,017 million and $0.98 in the prior-year quarter. eCommerce sales increased 17%.

Management said it has completed its strategic review and expects its eCommerce business to become profitable in 2026. Gross margin rose to 22.8%b from 22.4%, helped by the sale of Kroger Specialty Pharmacy, Our Brands performance, lower supply chain costs and lower shrink. Operating, general and administrative expense rose to 25.0% of sales from 17.5%, which includes an 8 basis point effect from an accelerated multi-employer pension contribution.

Net total debt to adjusted EBITDA was 1.73, versus 1.21 a year earlier and within a stated target range of 2.30 to 2.50. Kroger narrowed its 2025 identical sales without fuel guidance to 2.8% to 3.0% from 2.7% to 3.4%, and raised the low end of its adjusted EPS guidance to $4.75 to $4.80c from $4.70 to $4.80.

Operating profit, free cash flow ($2.8 to $3.0 billiond) and capital expenditures ($3.6 to $3.8 billion) guidance were unchanged. The company also said it is executing open market repurchases under the remaining $2.5 billion of its $7.5 billion authorization, expected to finish by the end of fiscal 2025.

02—Key points

Key Highlights

  1. Third quarter GAAP operating loss of $(1,541) million and EPS of $(2.02), including $2.6 billion in impairment and related charges for the automated fulfillment network ($3.00 loss per share).
  2. Adjusted FIFO operating profit of $1,089 million, up from $1,017 million, and adjusted EPS of $1.05, up from $0.98.
  3. Identical sales without fuel increased 2.6%, and eCommerce sales increased 17%.
  4. Gross margin of 22.8% versus 22.4%, aided by the sale of Kroger Specialty Pharmacy, Our Brands performance and lower shrink.
  5. Full-year 2025 identical sales without fuel guidance narrowed to 2.8% to 3.0%; adjusted EPS guidance low end raised to $4.75 from $4.70 (range $4.75 to $4.80).
  6. Net total debt to adjusted EBITDA of 1.73, compared with 1.21 a year ago, versus a target range of 2.30 to 2.50.
  7. Remaining $2.5 billion open market share repurchases expected to be completed by the end of fiscal 2025.

03—Questions

Frequently Asked Questions

  1. Why was Kroger's third quarter GAAP result a loss?

    The operating loss of $(1,541) million and EPS loss of $(2.02) include $2.6 billion in previously announced impairment and related charges for the automated fulfillment network, which equated to a $3.00 loss per share.

  2. How did underlying operating performance compare with last year?

    Adjusted FIFO operating profit was $1,089 million versus $1,017 million in the third quarter of 2024, and adjusted EPS was $1.05 versus $0.98. Identical sales without fuel rose 2.6%.

  3. What changed in Kroger's 2025 guidance?

    Identical sales without fuel guidance was narrowed to 2.8% to 3.0% from 2.7% to 3.4%, and adjusted EPS guidance became $4.75 to $4.80 from $4.70 to $4.80. Operating profit, free cash flow and capital expenditure guidance were unchanged.

  4. What did management say about eCommerce?

    eCommerce sales increased 17% in the quarter, and management said completing its strategic review should make the eCommerce business profitable in 2026.

  5. What is Kroger's capital allocation plan?

    Kroger expects to keep generating strong free cash flow, maintain its investment grade debt rating, continue its quarterly dividend with increases over time subject to board approval, and complete open market repurchases under the remaining $2.5 billion authorization by the end of fiscal 2025.

04—Continue

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