Kroger’s (NYSE: KR) upcoming third‑quarter report is expected to provide insights into how the grocer is navigating inflation-induced cost pressures, cautious consumer spending, and increasing competition across traditional and digital channels. Investors will be closely watching margin trends and the company’s e-commerce strategy.
Q3 Report Due
When Kroger reports Q3 2025 results on December 4, before the opening bell, market watchers will be looking for adjusted earnings of $1.03 per share and revenues of $34.25 billion. In the prior-year quarter, the company reported earnings of $0.98 per share on revenues of $33.63 billion. It has a strong track record of outperforming analysts’ profit forecasts — quarterly earnings have consistently beaten estimates over the past six years.
After retreating from the all-time highs of August, Kroger’s shares have lost about 12%. In 2025, the stock experienced high fluctuation and is up 8% since the beginning of the year. Over the years, the company has regularly raised its dividend and currently offers a yield of 2.1%, which is above the average for the broader market.
Key Metrics
In the second quarter, Kroger’s sales remained broadly unchanged year-over-year at $33.9 billion. Excluding fuel and Kroger Specialty Pharmacy, sales increased 3.8%. The company said it expects identical sales for fiscal 2025, without fuel, to be up 2.7-3.4%, which is higher than the guidance issued earlier.
Reported net earnings were $609 million or $0.91 per share in Q2, compared to $466 million or $0.64 per share last year. On an adjusted basis, earnings per share increased 12% annually to $1.04 during the three months. Earnings beat estimates while the top line missed the mark. The management’s forecast for full-year adjusted earnings per share is $4.70-4.80.
Kroger’s CEO Ronald Sargent said in his post-earnings interaction with analysts, “As we continue to build our leadership team, we are also looking at our costs, especially those expenses that do not directly support our priorities or deliver value to our shareholders. As we shared last quarter, we have begun closing approximately 60 unprofitable stores. Last month, we also reduced our corporate administrative team by nearly a thousand associates. While these decisions are difficult, they are also necessary for the company’s long-term success.“
Rough Patch
Like other retailers, Kroger is facing stiff competition — particularly from Walmart and Costco — as customers remain value-conscious. In addition, the company is engaged in a legal battle with Albertsons over a failed merger. With inflation and new import tariffs weighing on margins, the company is struggling to balance price hikes with value creation. The demand for Kroger’s lower-priced private labels has been on the rise lately, outpacing national brands.
The average price of Kroger’s stock for the last 52 weeks is $66.66. On Tuesday, the stock opened at $64.80 and traded higher in the early hours.
