In the first quarter of 2025, The Kroger Co. reported a rise in equivalent sales without fuel of 3.2%, compared to an increase of 0.5% in the same period the previous year. Adjusted net earnings per diluted share grew by 4% to $1.49, while total sales reached $45.1 billion, slightly down from $45.3 billion year-over-year.

Kroger’s operating profit for the first quarter stood at $1.32 billion, an increase from $1.29 billion from the prior year. The adjusted FIFO operating profit was $1.52 billion, compared to $1.50 billion in 2024. The FIFO gross margin rate improved by 79 basis points to 23.0%, driven by factors such as the sale of Kroger Specialty Pharmacy and reductions in shrink and supply chain costs.

The operating, general and administrative (OG&A) rate increased by 63 basis points to 17.6%, largely due to the same sale of Kroger Specialty Pharmacy and an accelerated contribution to a multiemployer pension plan. After accounting for these factors, the underlying OG&A rate remained relatively stable.

Kroger expects to close approximately 60 underperforming stores over the next 18 months, which the company anticipates will provide a modest financial benefit. Internally, Kroger’s net total debt to adjusted EBITDA ratio was 1.69, compared to a target range of 2.30 to 2.50.

E-commerce sales growth was notable, increasing by 15% in the quarter, contributing positively to Kroger’s overall sales growth. The guidance for identical sales without fuel for the full year has been updated to a range of 2.25% to 3.25%. The company continues to invest in e-commerce improvements and a new retail media platform.

Kroger’s results indicate a stable overall condition with significant growth in key categories amid changing consumer preferences. The company remains focused on enhancing customer experiences and operational efficiencies moving forward.