Executive Summary
The Kroger Co reported QQ2 2025 revenue of $33.94 billion, with operating income of $0.863 billion and net income of $0.609 billion, translating to an EPS of $0.91. Year-over-year (YoY) net income rose 30.7% while quarter-over-quarter (QoQ) net income declined 29.7%. The reported operating margin stood at 2.54% and the net margin at 1.79%, signaling a modest profitability profile amid ongoing cost and mix dynamics. A notable data point in the dataset is an anomalously high gross margin figure, with gross profit of $33.738 billion on $33.94 billion of revenue implying a gross margin near 99.4%. That level is inconsistent with a typical grocery retailer and appears to be a data integrity issue in the provided inputs; assume reported gross margin should reflect a mid-20s percentage in a normal set of results. The quarter also showed a substantial QoQ swing in gross profit and operating leverage that warrants close scrutiny of cost of goods sold, input costs, and store-level productivity.
Key Performance Indicators
QoQ: 254.54% | YoY:388.96%
QoQ: -39.99% | YoY:-10.38%
QoQ: -29.68% | YoY:30.69%
QoQ: -30.00% | YoY:42.19%
Key Insights
Revenue: $33.94B; YoY growth 0.08%; QoQ change -24.78%.\nGross Profit: $33.738B; YoY change 388.96%; QoQ change 254.54% (note: gross margin figure in dataset appears anomalously high; likely data error).\nOperating Income: $0.863B; YoY change -10.38%; QoQ change -39.99%.\nNet Income: $0.609B; YoY change 30.69%; QoQ change -29.68%.\nEPS: $0.91; YoY change 42.19%; QoQ change -30.00%.\nWeighted Avg Shares: 662M for basic and 665M for diluted.\nBalance Sheet highlights: Total assets $53.59B; Total l...
Financial Highlights
Revenue: $33.94B; YoY growth 0.08%; QoQ change -24.78%.\nGross Profit: $33.738B; YoY change 388.96%; QoQ change 254.54% (note: gross margin figure in dataset appears anomalously high; likely data error).\nOperating Income: $0.863B; YoY change -10.38%; QoQ change -39.99%.\nNet Income: $0.609B; YoY change 30.69%; QoQ change -29.68%.\nEPS: $0.91; YoY change 42.19%; QoQ change -30.00%.\nWeighted Avg Shares: 662M for basic and 665M for diluted.\nBalance Sheet highlights: Total assets $53.59B; Total liabilities $44.31B; Total stockholders’ equity $9.28B.\nLiquidity: Total current assets $15.81B vs. current liabilities $16.70B (current ratio ~0.95).\nDebt: Total debt $25.18B; Net debt $20.30B. Cash and equivalents $4.88B; short-term investments $1.13B; cash+short-term investments $6.02B.\nCash Flow: Operating cash flow and free cash flow metrics are not fully disclosed in the provided inputs; net income contributed $0.609B with cash flow items in the dataset showing limited corroboration.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
33.94B |
0.08% |
-24.78% |
| Gross Profit |
33.74B |
388.96% |
254.54% |
| Operating Income |
863.00M |
-10.38% |
-39.99% |
| Net Income |
609.00M |
30.69% |
-29.68% |
| EPS |
0.91 |
42.19% |
-30.00% |
Management Commentary
Transcript data not provided in the input. No management quotes or thematic highlights are available from an earnings call. If a transcript becomes available, themes would typically cover strategy execution (cost optimization, digital/channel expansion), store optimization, supply chain resiliency, and margin management in a competitive grocery environment.
Forward Guidance
No explicit forward guidance is contained in the supplied dataset. In the absence of management guidance, the outlook should be anchored on ongoing cost containment, productivity improvements, and continued investment in digital and private-label initiatives. Investors should monitor: (1) trajectory of comparable store sales and traffic trends, (2) margin recovery versus input cost inflation, (3) cadence of capital expenditures and store modernization, (4) working capital dynamics and cash conversion, and (5) debt refinancing activity given the elevated leverage. In a steady-state scenario, margin stabilization and modest earnings growth would be needed to support deleveraging over time.