Executive Summary
The Kroger Co delivered a Q4 2024 performance that reflected a difficult year-over-year top-line comparison, with revenue of $34.308 billion and a YoY revenue decline of 24.21%. Despite a modest QoQ improvement of 2.00%, gross profit fell to $7.161 billion, producing a gross margin of 20.87%. Operating income stood at $1.19 billion, yielding an operating margin of 3.47% and signaling selective margin resilience amid challenging revenue dynamics. Net income was $0.634 billion, or 1.85% net margin, down 33.05% YoY but slightly leveraged by a 2.59% QoQ uptick in earnings per share (EPS 0.90; diluted 0.91). Free cash flow reached $0.52 billion, while cash from operations was $1.404 billion, underscoring Kroger’s ability to generate cash despite a softer top line.
Balance sheet and capital allocation remain a focal point. Total debt stood at ~$25.08 billion with net debt around $21.12 billion, contributing to a debt-to-capitalization profile of roughly 75%. The company deployed significant cash toward share repurchases (~$5.03 billion) and debt repayments (~$4.74 billion) in the period, resulting in a negative net financing cash flow and a decline in cash balance from $13.36 billion to $3.96 billion. While liquidity remains adequate, leverage and funding costs warrant close monitoring as Kroger pursues growth initiatives in e-commerce, private-label, and store modernization against a highly competitive backdrop.
Looking ahead, the dataset does not provide explicit numeric forward guidance. Nonetheless, management emphasis on cost discipline, mix optimization, and continued investments in digital and store capabilities suggests a focus on improving margin synergy and cash generation to support deleveraging over time. Investors should track margin trajectory, working capital efficiency, and the pace of deleveraging versus ongoing capital allocation through buybacks and potential capital investments.
Key Performance Indicators
Key Insights
Revenue: Q4 2024 revenue of $34.308B, down 24.21% YoY; QoQ growth of +2.00% (from Q3 2024). Gross Profit: $7.161B with a gross margin of 20.87% (YoY margin impact: -21.88% in gross profit, QoQ +3.35%). Operating Income: $1.19B, operating margin 3.47% (YoY margin change: -8.04%; QoQ: +17.36%). Net Income: $0.634B, net margin 1.85% (YoY change: -33.05%; QoQ: +2.59%). EPS: $0.90 (GAAP) and $0.91 diluted; YoY EPS change: -31.30%; QoQ: +5.88%. Cash Flow: Net cash from operating activities $1.404B; ca...
Financial Highlights
Revenue: Q4 2024 revenue of $34.308B, down 24.21% YoY; QoQ growth of +2.00% (from Q3 2024). Gross Profit: $7.161B with a gross margin of 20.87% (YoY margin impact: -21.88% in gross profit, QoQ +3.35%). Operating Income: $1.19B, operating margin 3.47% (YoY margin change: -8.04%; QoQ: +17.36%). Net Income: $0.634B, net margin 1.85% (YoY change: -33.05%; QoQ: +2.59%). EPS: $0.90 (GAAP) and $0.91 diluted; YoY EPS change: -31.30%; QoQ: +5.88%. Cash Flow: Net cash from operating activities $1.404B; capex $0.884B; free cash flow $0.520B; FCF per share $0.753; Operating cash flow return on sales (OCF/Sales) ~4.09%; Free cash flow to sales ratio 0.37. Balance Sheet & Leverage: Total assets $52.616B; total liabilities $44.335B; total shareholders’ equity $8.285B; total debt $25.082B; net debt $21.123B; debt to capitalization ~75% and debt to equity ~3.03x. Liquidity: Cash and equivalents $3.959B; cash and short-term investments $5.271B; current ratio 0.963x; quick ratio 0.519x; cash ratio 0.0136x; Interest coverage ~5.85x. Valuation (selected): P/E 16.8x; P/S 1.24x; P/FCF 81.9x; Price-to-book 5.14x; Dividend yield ~0.55%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
34.31B |
-24.21% |
2.00% |
| Gross Profit |
7.16B |
-21.88% |
3.35% |
| Operating Income |
1.19B |
-8.04% |
17.36% |
| Net Income |
634.00M |
-33.05% |
2.59% |
| EPS |
0.90 |
-31.30% |
5.88% |
Key Financial Ratios
operatingProfitMargin
2.66%
operatingCashFlowPerShare
$2.03
freeCashFlowPerShare
$0.75
dividendPayoutRatio
36.6%
Management Commentary
No earnings call transcript quotes were provided in the dataset. Earnings call commentary could not be synthesized from available data.
No transcript quotes available in the provided dataset.
— N/A
Forward Guidance
No explicit numeric forward guidance was included in the provided data. The absence of quantified targets means assumptions should be driven by qualitative cues: anticipated benefits from ongoing cost optimization, mix shift toward higher-margin private-label and omnichannel growth, and operational efficiency initiatives. Investors should monitor: (1) margin expansion trajectory, especially gross margin resilience amid competitive pricing and supplier costs; (2) deleveraging progress given the high debt load; (3) working capital efficiency and cash conversion, including inventory management; and (4) pace of investments in digital, loyalty, and store modernization that could sustain long-run growth and price competitiveness.