The Kroger Co. Revenue & Financials

Kroger's financial performance in fiscal year 2024, which ended February 1, 2025, reflected both the underlying resilience of its business model and the headwinds of a challenging consumer environment. Total revenues of approximately $150.0 billion, including $12.7 billion in fuel sales, represented a modest increase from the prior fiscal year's $148.3 billion. Excluding fuel and the effect of the 53rd week in fiscal 2023, sales growth was slightly positive but broadly in line with food inflation dynamics rather than reflecting meaningful volume gains. Gross margin for the year came in at approximately 22.4 percent of sales, essentially flat with the prior year as private-label mix improvements and procurement discipline offset ongoing shrink (theft and waste) headwinds and wage-driven cost pressures in fresh departments. Adjusted FIFO operating profit—Kroger's preferred non-GAAP measure, which excludes fuel, LIFO adjustments, and certain charges—was approximately $4.5 billion, representing a margin of roughly 3.2 percent on non-fuel revenues. This figure captures the company's genuine operating earnings power and was in line with management's full-year guidance. Net income attributable to Kroger shareholders was approximately $2.2 billion, or approximately $3.10 per diluted share on an adjusted basis, reflecting the partial absorption of approximately $600 million in merger-related transaction and financing costs associated with the terminated Albertsons deal. Excluding these merger-related charges, underlying earnings power was strong relative to the challenging macro environment. Kroger's capital allocation priorities have remained consistent: fund organic growth capital expenditures of approximately $3.4 to $3.6 billion annually (covering new stores, remodels, technology, and digital infrastructure), maintain the dividend (increased for 17 consecutive years as of 2024), and return excess capital through share repurchases. The company repurchased approximately $1.5 billion of its own shares during fiscal year 2024 and paid approximately $500 million in dividends, for a combined return of approximately $2.0 billion. The balance sheet remained investment-grade, with approximately $12.7 billion in long-term debt partially reflecting financing arranged in anticipation of the Albertsons acquisition. Management has indicated an intention to accelerate debt reduction following the merger termination, targeting a net debt-to-adjusted EBITDA ratio of approximately 2.3 to 2.5 times.