Sector: Consumer Staples|Industry: Grocery Stores|Market Cap: $44.06B|Employees: 414K
The Kroger Co. is a major supermarket chain operating across 35 states and the District of Columbia. They focus on growing customer loyalty through value, convenience, and strategic investments in fresh products, private label brands, data-driven personalization, and a seamless customer experience. Kroger also operates retail pharmacies and fuel centers, and is diversified across brands, product categories, and geographies.
Total sales decreased by 0.1% to $147.123 billion, with supermarket fuel sales decreasing 8.4% and the sale of Kroger Specialty Pharmacy impacting overall figures. However, total sales to retail customers without fuel increased by 0.8%.
The gross margin rate increased to 22.26% from 21.83%, primarily attributed to the sale of Kroger Specialty Pharmacy (which had a lower margin), strong performance of Our Brands, and decreased shrink, partially offset by lower pharmacy margins.
Operating profit increased by 24.3% to $3.849 billion, driven by decreased OG&A expenses and a higher FIFO gross margin rate, partially offset by increased depreciation and amortization expenses and a decrease in fuel operating profit.