Kroger reported its fourth-quarter and full-year 2024 results, highlighting positive sales growth and profitability improvements. Identical sales without fuel increased by 2.4% in Q4 and 1.5% for the full year. Total company sales for the fourth quarter were $34.3 billion, down from $37.1 billion in the same period last year, largely due to the impact of the 53rd week in 2023 and the sale of Kroger Specialty Pharmacy. Excluding these factors, sales increased by 2.6% compared to the prior year.
Fourth-quarter operating profit was $912 million, with earnings per share (EPS) at $0.90. Adjusted FIFO operating profit was $1.17 billion, and adjusted EPS was $1.14. Digital sales grew by 11%, excluding the 53rd week in 2023. For fiscal year 2024, Kroger reported total sales of $147.1 billion, with an operating profit of $3.8 billion and EPS of $3.67. Adjusted FIFO operating profit stood at $4.7 billion, and adjusted EPS was $4.47. The company also delivered more than $13 billion in digital sales.
Kroger continued to focus on alternative profit businesses, generating $1.35 billion in operating profit from this segment, with a 17% increase in media revenue. The company also invested in associate wages, bringing the average hourly rate to more than $19, or more than $25 when including comprehensive benefits. A $5 billion accelerated share repurchase program was launched as part of the company’s $7.5 billion share repurchase authorization.
CEO Ron Sargent expressed confidence in Kroger’s long-term growth strategy, emphasizing strong customer experience and cost discipline. The company reaffirmed its commitment to digital expansion, fresh food innovation, and cost savings initiatives.
Looking ahead to fiscal year 2025, Kroger expects identical sales without fuel to grow by 2.0% to 3.0%. Adjusted FIFO operating profit is projected to be between $4.7 billion and $4.9 billion, while adjusted net earnings per diluted share are expected to range from $4.60 to $4.80. Capital expenditures are forecasted at $3.6 billion to $3.8 billion, and adjusted free cash flow is expected to be between $2.8 billion and $3.0 billion.
Kroger continues to leverage digital investments, fresh food offerings, and operational efficiencies to drive long-term sustainable growth. The company remains focused on expanding its market leadership and enhancing shareholder value through dividends and share repurchases.