The Kroger Company (NYSE:KR) reported full-year 2025 sales of $147.6 billion and issued a 2026 guidance that signals steady growth, even as the retailer navigates the tail end of a major strategic shift in its automated fulfillment network.
For the fiscal year ended Jan. 31, 2026, Kroger’s identical sales (excluding fuel) rose 2.9%, underscoring the resilience of its "Our Brands" private-label portfolio and a 20% surge in adjusted e-commerce sales.
While total company sales hit $147.6 billion, the bottom line was impacted by a $2.5 billion impairment charge related to its automated fulfillment network—a move management described as a necessary "right-sizing" of its digital infrastructure to ensure long-term profitability.
Consequently, GAAP operating profit for the year stood at $1.9 billion.
Stripping out the impairment and other one-time items, Kroger's underlying performance remained robust.
The company reported an adjusted FIFO operating profit of $4.9 billion and adjusted earnings per share (EPS) of $4.85.
The year was also marked by a significant return of capital, as Kroger completed a $7.5 billion share repurchase authorization and appointed Greg Foran as its new Chief Executive Officer to lead the next phase of its omnichannel strategy.
Looking ahead to 2026, Kroger provided a cautious but constructive outlook.
The company expects identical sales (excluding fuel) to grow between 1% and 2%, a range that includes a 130-basis point headwind from the Inflation Reduction Act.
Management forecasts an adjusted FIFO operating profit of $5 billion to $5.2 billion and adjusted EPS of $5.10 to $5.30.