CINCINNATI – Kroger Co. reported strong first quarter 2025 results, fueled by gains in pharmacy and eCommerce. Identical sales without fuel rose 3.2%, with total sales reaching $45.1 billion.
Pharmacy was a standout growth driver, helping boost gross margin to 23%, up from 22% a year ago, despite typically lower pharmacy margins. E-commerce sales also climbed 15% year-over-year.
“Kroger delivered solid first quarter results, with strong sales led by pharmacy, eCommerce and fresh. We made good progress in streamlining our priorities, enhancing customer focus, and running great stores to improve the shopping experience,” said Chairman and CEO Ron Sargent.
“Our commitment to driving growth in our core business and moving with speed positions us well for the future. We are confident in our ability to build on our momentum, deliver value for customers, invest in associates and generate attractive returns for shareholders,” he added.
The company raised its full-year identical sales guidance to 2.25%–3.25%, reflecting confidence in its momentum despite macroeconomic uncertainty.
First-quarter EPS held steady at $1.29, while adjusted EPS rose to $1.49. Kroger also reaffirmed its full-year adjusted EPS guidance of $4.60–$4.80.
As part of a strategic realignment, Kroger will close around 60 stores but expects minimal financial impact. The company plans to reinvest savings into customer-facing improvements.
