CINCINNATI, OH - The Kroger Co. reported its second quarter 2025 results, updated guidance, and shared progress on key priorities in this recent release.
Comments from Chairman and CEO Ron Sargent
"Kroger delivered another quarter of strong results, which demonstrates the clear and measurable progress we've made on our priorities – to simplify our organization, to improve the customer experience, and to focus on work that creates the most value."
Second Quarter Financial Results
Total company sales were $33.9 billion in the second quarter compared to $33.9 billion for the same period last year, which included $718 million from Kroger Specialty Pharmacy sales. Excluding fuel and Kroger Specialty Pharmacy, sales increased 3.8% compared to the same period last year.
Gross margin was 22.5% of sales for the second quarter compared to 22.1% for the same period last year. The improvement in gross margin was primarily attributable to the sale of Kroger Specialty Pharmacy, lower supply chain costs, lower shrink, and decreased fuel sales, partially offset by the mix effect from growth in pharmacy sales, which has lower margins, and price investments.
The FIFO gross margin rate, excluding rent, depreciation and amortization, fuel, and adjustment items increased 39 basis points compared to the same period last year. The improvement in rate was primarily attributable to the sale of Kroger Specialty Pharmacy, lower shrink and lower supply chain costs, partially offset by the mix effect from growth in pharmacy sales, which has lower margins, and price investments.
The LIFO charge for the quarter was $62 million, compared to a LIFO charge of $21 million for the same period last year.
The Operating, General and Administrative rate, excluding fuel and adjustment items, decreased 5 basis points compared to the same period last year. The decrease in rate was primarily attributable to improved productivity and a favorable comparison to prior year, which included certain non-recurring charges, partially offset by the sale of Kroger Specialty Pharmacy.
See the full release here.
