Kroger raises 2025 guidance after strong second quarter results

Kroger Co. (NYSE: KR) reported second quarter 2025 earnings per share of $0.91, up from $0.64 in the same period last year, and raised its full-year guidance following stronger-than-expected performance.

The grocery chain posted identical sales without fuel growth of 3.4% in the quarter ended August 16, 2025, compared to 1.2% in the prior year period. Total company sales remained flat at $33.9 billion versus the same quarter in 2024, which included $718 million from Kroger Specialty Pharmacy sales.

Operating profit increased to $863 million from $815 million year-over-year. On an adjusted basis, the company reported earnings per share of $1.04, compared to $0.93 in the second quarter of 2024.

eCommerce sales grew 16% during the quarter, while gross margin improved to 22.5% from 22.1% in the prior year period. The margin improvement was primarily driven by the sale of Kroger Specialty Pharmacy, lower supply chain costs and reduced shrink.

Based on the strong performance, Kroger updated its 2025 guidance. The company now expects identical sales without fuel to grow 2.7% to 3.4%, up from the previous range of 2.25% to 3.25%. Operating profit guidance was raised to $4.8 billion to $4.9 billion from $4.7 billion to $4.9 billion, while earnings per share guidance increased to $4.70 to $4.80 from $4.60 to $4.80.

"Kroger's second quarter results reflect continued momentum in our business. Sales growth has been strong, led by pharmacy, eCommerce and Fresh, and we are encouraged by the improvement in grocery volumes," said CFO David Kennerley.

The company continues to execute a $5 billion accelerated share repurchase program expected to complete in the third quarter, with plans to resume open market repurchases under its remaining $2.5 billion authorization thereafter.

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