The Kroger Co (0JS2.L) Q1 2025 Earnings Report

The Kroger Co delivered QQ1 2025 revenue of $45.118 billion, a slight year-over-year dip of 0.3% but a robust sequential expansion of 31.5% from the prior quarter, driven by seasonality and a favorable mix. Net income of $0.866 billion and an EPS of $1.30 (diluted $1.29) reflect continued earnings resilience in a low-margin, high-competition grocery environment. Gross margin stood at 21.09%, with an operating margin of 3.19% and a net margin of 1.92%, underscoring the ongoing cost pressures and promotional intensity in the sector. Free cash flow reached $972 million, supported by $2.016 billion of operating cash flow and modest capital expenditures of $1.044 billion, enabling continued deleveraging and shareholder-friendly activities such as share repurchases and dividends.