FMP
Kroger Co. (NYSE: KR) Q3 2025 Earnings Report Highlights
Dec 04, 2025
Kroger's adjusted earnings per share (EPS) of $1.05 slightly exceeded analyst expectations of $1.04. However, the company reported a GAAP net loss of $(1,320) million, or $(2.02) per diluted share, primarily due to a $2.6 billion non-cash impairment and related charges for its automated fulfillment network.
Total sales reached $33.9 billion, up from $33.6 billion in the prior-year quarter, though this fell short of Wall Street's consensus estimate of approximately $34.2 billion.Kroger's identical sales without fuel grew 2.6%, compared to 2.3% in the same period last year, reflecting steady customer demand and operational execution. The company's eCommerce sales surged 17%, underscoring its aggressive push into digital channels and omnichannel strategies.
Kroger Co. (NYSE: KR) is a leading American retail company, primarily operating supermarkets and multi-department stores. It is one of the largest grocery retailers in the United States, competing with giants like Walmart and Costco. On December 4, 2025, Kroger released its fiscal third-quarter results for the period ended November 8, 2025, reporting an adjusted EPS of $1.05, which topped the consensus estimate of $1.04. Total sales of $33.9 billion, however, missed the anticipated $34.2 billion.
Despite the revenue miss, the quarter demonstrated resilience in core operations, with identical sales without fuel rising 2.6%, as noted in coverage by The Wall Street Journal. On a GAAP basis, Kroger posted an operating loss of $(1,541) million, driven largely by the $2.6 billion in impairment charges related to its automated fulfillment network—a strategic reevaluation aimed at optimizing future investments. Kroger's eCommerce sales climbed 17%, a highlight of the quarter. Chairman and CEO Rodney Mcmullen (noting the reference to Ron Sargent in prior materials may reflect a transitional note) expressed optimism, stating: “Kroger delivered another quarter of strong results reflecting meaningful progress on our strategic priorities. Our eCommerce business posted another quarter of impressive performance. We have now completed our strategic review which we expect will make our eCommerce business profitable in 2026. We continue to focus on what matters most - serving our customers, running great stores, and strengthening our core business. Our results show we are improving the customer experience and building a strong foundation for long-term growth.” This emphasis aligns with Kroger's broader commitment to enhancing customer experiences and bolstering its foundational retail operations for sustained expansion.Kroger's financial metrics offer a window into its valuation and health.
The company maintains a price-to-earnings (P/E) ratio of approximately 15.18, signaling a balanced market assessment of its earnings potential. Its price-to-sales ratio stands at about 0.28, pointing to a modest valuation relative to revenue generation. The enterprise value to sales ratio is roughly 0.42, capturing the broader picture of its market worth against sales.
Further indicators of financial stability include a debt-to-equity ratio of approximately 2.71, which reflects moderate leverage. The current ratio of about 0.95 indicates near parity in covering short-term obligations with liquid assets. Amid these dynamics, Kroger's earnings yield of around 6.59% presents an attractive return profile for value-oriented investors.
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