The Kroger Co. (KR) Reports Q4 Revenue of $34.7B, Gross Margin Improves to 23.1%

We recently compiled a list of the 12 Top Performing Consumer Staples Stocks in February. The Kroger Co. is one of the best performing stocks to invest in.

TheFly reported on March 9 that Citigroup analyst Paul Lejuez increased its price target for KR to $71 from $68, while continuing to assign a Neutral rating to the stock.

The Kroger Co. also released results for the fourth quarter and the entire year 2025 on March 5. KR reported $34.7 billion in overall revenue for the fourth quarter, up from $34.3 billion the year before. Sales increased by 2.1% when gasoline was excluded. Sourcing efficiency, lower supply chain expenses, increased fuel margins, decreased depreciation, and decreased shrinkage all contributed to the gross margin’s improvement from 22.7% to 23.1%, which was somewhat offset by price investments and the lower-margin mix from pharmaceutical sales.

The Kroger Co. (NYSE:KR) Reports Q4 Revenue of $34.7B, Gross Margin Improves to 23.1%

Due to similar factors, the FIFO gross margin rate, which does not include rent, depreciation, amortization, or fuel, remained the same from year to year. LIFO charges dropped from $30 million to $11 million. Excluding fuel and adjustments, the Operating, General, and Administrative (OG&A) rate increased by 21 basis points, mostly as a result of labor expenditures and cycle real estate gains from the previous year.

With fuel and Kroger Specialty Pharmacy excluded, total company sales for fiscal 2025 were $147.6 billion, up 3.0% from $147.1 billion in 2024. Due to improvements in sourcing, lower shrinkage, lower supply chain expenses, and the sale of Kroger Specialty Pharmacy, the gross margin increased from 22.3% to 22.9%. While LIFO charges rose to $157 million, FIFO margin climbed by 44 basis points. Gains in productivity partially offset the 29 basis point increase in OG&A.

The Kroger Co. is one of the largest U.S. grocery retailers, operating supermarkets, multi-department stores, and convenience stores. It offers food, pharmacy, and household products, emphasizing private-label brands, digital shopping, and customer loyalty programs across its extensive retail network.

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