Kroger Company (the) · NYSE:KR
Kroger Company (the) — The Kroger — Q3 2025 Earnings Presentation
16 slides from Kroger Company (the)'s earnings presentation, Dec 4, 2025
Slide 1: Kroger Q3 2025 Earnings Release
Kroger Q3 2025 Earnings Release December 4, 2025 1
Slide 2: Safe Harbor
Safe Harbor This presentation includes certain statements that constitute “forward-looking statements” about Kroger’s financial position and expected performance. These statements are based on management’s assumptions and beliefs in light of currently available information. Such statements are indic
Slide 3: Q3 2025 Results
Q3 2025 Results +2.6% $(1,541M) $(2.02) ID Sales(1) GAAP Operating Profit(2) GAAP EPS(2) +17% $1,089M $1.05 Adj. EPS eCommerce Sales Adj. FIFO Operating Profit +7% growth (1) Without fuel (2) Includes $2.6 billion in previously announced impairment and related charges ($3.00 loss per share) for auto
Slide 4: Strengthening our Value Creation Model
Strengthening our Value Creation Model Delivering Sustainable Total Shareholder Return of 8 – 11%* Supermarket Health and Wellness Grew eCommerce sales by 17% Strong sales growth compared to last over last year and improved year driven by core pharmacy scripts Strong, Durable Retail profitability an
Slide 5: 2025 Full-Year Guidance
2025 Full-Year Guidance* FY25 Guidance as of FY25 Guidance as of Adjusted Metric* September 11, 2025 December 4, 2025 Identical Sales without fuel (%) 2.7% – 3.4% 2.8% – 3.0% Operating Profit ($B) $4.8 – $4.9 $4.8 – $4.9 EPS ($) $4.70 – $4.80 $4.75 – $4.80 Free Cash Flow ($B) $2.8 – $3.0 $2.8 – $3.0
Slide 6: Investment Thesis
Investment Thesis Strong Business with Proven Value Strong Balance Exciting Growth Creation Model Sheet & Resilient Opportunities Free Cash Flow • Conveniently located ~2,700 stores • Net Earnings Growth, 3-5% • Strong Free Cash Flow Yield • ID Sales Growth (ex. Fuel), 2-4% • First Party Data on 63M
Slide 7: Appendix
Appendix
Slide 8: Consolidated Statements of Operations
Table 1. THE KROGER CO. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share amounts) (unaudited) THIRD QUARTER YEAR-TO-DATE 2025 2024 2025 2024 SALES $ 33,859 100.0% $ 33,634 100.0% $ 112,917 100.0% $ 112,815 100.0% OPERATING EXPENSES MERCHANDISE COSTS, INCLUDING ADVERTISING, WAREHO
Slide 9: Consolidated Balance Sheets
Table 2. THE KROGER CO. CONSOLIDATED BALANCE SHEETS (in millions) (unaudited) November 8, November 9, 2025 2024 ASSETS Current Assets Cash $ 222 $ 235 Temporary cash investments 3,734 13,123 Store deposits in-transit 1,111 1,082 Receivables 2,373 2,193 Inventories 7,714 7,585 Prepaid and other curre
Slide 10: Consolidated Statements of Cash Flows
Table 3. THE KROGER CO. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (unaudited) YEAR-TO-DATE 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings including noncontrolling interests $ 163 $ 2,038 Adjustments to reconcile net earnings including noncontrolling interests to net cash prov
Slide 11: Supplemental Sales Information
Table 4. Supplemental Sales Information (in millions, except percentages) (unaudited) Items identified below should not be considered as alternatives to sales or any other GAAP measure of performance. Identical sales is an industry-specific measure, and it is important to review it in conjunction wi
Slide 12: Reconciliation of Net Total Debt and Net Earnings to Adjusted EBITDA
Table 5. Reconciliation of Net Total Debt and Net Earnings Attributable to The Kroger Co. to Adjusted EBITDA (in millions, except for ratio) (unaudited) The items identified below should not be considered an alternative to any GAAP measure of performance or access to liquidity. Net total debt to adj
Slide 13: Net Earnings Per Diluted Share Excluding the Adjustment Items
Table 6. Net Earnings Per Diluted Share Excluding the Adjustment Items (in millions, except per share amounts) (unaudited) The purpose of this table is to better illustrate comparable operating results from our ongoing business, after removing the effects on net earnings (loss) per diluted common sh
Slide 14: Net Earnings Per Diluted Share Excluding the Adjustment Items (continued)
Table 6. Net Earnings Per Diluted Share Excluding the Adjustment Items (continued) (in millions, except per share amounts) (unaudited) (a) The amounts presented represent the after-tax effect of each adjustment. (b) The pre-tax adjustments for loss on investments were $101 and $20 in the third quart
Slide 15: Operating Profit Excluding the Adjustment Items
Table 7. Operating Profit Excluding the Adjustment Items (in millions) (unaudited) The purpose of this table is to better illustrate comparable operating results from our ongoing business, after removing the effects on operating profit (loss) for certain items described below. Adjusted FIFO operatin
Slide 16: Gross Margin
Table 8. Gross Margin (in millions, except percentages) (unaudited) In the Consolidated Statements of Operations within Table 1, the Company separately presents rent and depreciation and amortization to evaluate operational effectiveness. The table below calculates gross margin in accordance with Ge