Kroger Co. reported strong third-quarter fiscal 2025 results, with adjusted earnings beating estimates at $1.05 per share and total sales reaching $33.9 billion. Despite falling short of the sales consensus, Kroger’s performance was driven by e-commerce and pharmacy strength, with premium brands like Simple Truth and Private Selection leading the way.

The company’s gross margin expanded to 22.8%, driven by operational efficiencies and strong brand performance. Kroger’s adjusted FIFO operating profit rose to $1,089 million, while GAAP operating loss was $1,541 million. The company reaffirmed its fiscal 2025 capital expenditure outlook and adjusted free cash flow guidance.

Kroger narrowed its guidance range, expecting identical sales without fuel to grow 2.8%-3.0% and adjusted EPS between $4.75 and $4.80. Shares of the company have risen 4% over the past year. Additionally, American Eagle Outfitters, Boot Barn Holdings, and Amazon.com are highlighted as potential investment opportunities in the retail sector.

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Read more at Nasdaq: Kroger Q3 Earnings Beat Estimates, E-Commerce Sales Jump 17%