Kroger Raises 2025 Outlook After Strong Q2 Earnings

Kroger reported strong second-quarter earnings, surpassing market expectations and leading to a 2% increase in its stock price. The company raised its full-year 2025 earnings guidance, reflecting improved grocery volumes and a more optimistic outlook, with same-store sales growth now expected between 2.7% and 3.4%. While revenue remained flat year over year at approximately $33.9 billion, Kroger's adjusted earnings per share rose to $1.04, beating the consensus estimate of $1. Kroger's financial performance is underpinned by steady revenue growth and efficient cost management, with a gross margin of 23.01%. Investors responded positively to Kroger's earnings report and raised guidance amid a broader positive trend in the second-quarter earnings season, where S&P 500 companies overall are expected to report a 12% earnings per share increase. The company's strategic restructuring efforts and solid market position as one of the largest U.S. grocery retailers support its favorable outlook.