Kroger reported strong Q1 2025 earnings on June 20th, bringing a welcome return to stability following the termination of the Albertsons merger and CEO transition earlier this year. Total sales were better than expected at $45.1B, ID sales growth was the strongest in 2 years at +3.2%, and digital growth re-accelerated to 15%.
We are impressed with interim CEO Ron Sargent and new CFO David Kennerley taking a disciplined approach, prioritizing customer experience (including price), high-return investments, and cost optimization. There was no specific quantification related to market share, but the tone suggested confidence in directional improvement where investments are being made, especially through new stores and digital.
The stock was up over 9% on the results. Economic tailwinds that favor eating at home/the grocery industry and no material impact from tariffs leave us feeling more optimistic for Kroger’s business in 2H25.
Download Harvest Group’s full earnings recap with unique takeaways for suppliers here:
