Adjusted earnings increased to $1.49 per share in the first quarter from $1.43 per share in the corresponding period of fiscal 2024. Net income was $866 million or $1.29 per share in Q1, compared to $947 million or $1.29 per share last year. Gross margin moved up to 23% from 22% in the year-ago quarter.
Commenting on the results, Kroger’s chairman and chief executive officer Ron Sargent said, “We made good progress in streamlining our priorities, enhancing customer focus, and running great stores to improve the shopping experience. Our commitment to driving growth in our core business and moving with speed positions us well for the future.”
The Kroger leadership said it expects to continue generating strong free cash flow and invest in the business to drive long-term sustainable profit growth. For fiscal 2025, the company expects identical sales, without fuel, to grow between 2.25% and 3.25%. The management reaffirmed its full-year adjusted earnings per share guidance in the range of $4.60 to $4.80. It continues to expect adjusted free cash flow to be between $2.8 billion and $3.0 billion in FY25.