Kroger posted fourth-quarter earnings and identical sales gains while announcing it is pushing store openings this year, including entry into new markets.
Company net earnings were $861 million, or $1.35 per diluted share, versus $634 million, or 90 cents per diluted share, in the year-before quarter. Adjusted for one-time events, earnings per diluted share were $1.28 versus $1.14 in the year-previous period.
A Zacks Investment Research analyst consensus estimate pegged earnings per adjusted diluted share at $1.20 on revenues of $35.11 billion.
Identical sales without fuel advanced 2.4% in the quarter year over year, according to Kroger. Sales were $34.73 billion versus $34.31 billion in the year-earlier quarter. Operating profit was $1.25 billion versus $912 million in the year-prior period, while adjusted operating profit was $1.21 billion compared to $1.17 billion, the company reported.
In the full year, company earnings were $1.02 billion, or $1.54 per diluted share, versus $2.67 billion, or $3.67 per diluted share, in the year before. Adjusted diluted earnings per share were $4.85 versus $4.47 in the year previous.
Sales were $147.64 billion versus $147.12 billion in the year earlier. Operating profit was $1.89 billion versus $3.85 billion in the year prior, while adjusted operating profit was $4.9 billion versus $4.7 billion, Kroger noted.
Commented on Kroger’s financial outlook, CFO David Kennerly said, “For 2026, we expect identical sales without fuel growth of 1% to 2%, adjusted FIFO operating profit of $5 to $5.2 billion, and adjusted EPS of $5.10 to $5.30. Our identical sales without fuel guidance includes an approximately 130 basis point headwind from the Inflation Reduction Act. This guidance reflects our ability to invest more aggressively in value for customers while improving gross margins, funded by e-commerce reaching profitability, meaningful procurement efficiencies and productivity gains across the business.”
New company CEO Greg Foran said, “Kroger delivered a strong finish to the year with improving market share trends and solid sales growth that reflect meaningful progress strengthening the business. We have the right foundation in place, and I’m focused on making it even stronger by delivering more value to customers, improving the customer experience in stores and online, and driving cost savings and productivity to fund our growth.“
In a conference call, Ron Sargent, Kroger chairman, noted the company would emphasize new store growth in the year ahead.
“We accelerated our new store investments in 2025, completing 29 major projects,” Sargent said. “In 2026, we expect to increase new store openings by 30% with plans to expand into two new regions… Jacksonville and Kansas City, two high-potential markets that will support our long-term growth.”.
