New Kroger CEO Foran: ‘We need to grow sales faster’

CINCINNATI — Greg Foran, the new chief executive officer of The Kroger Co., said the supermarket retailer “has tremendous strengths to build on” as it closed out fiscal 2025 with higher adjusted earnings per share and sales.

A former CEO of Walmart US, Foran took the CEO reins at Cincinnati-based Kroger in early February from chairman Ron Sargent, who had served as interim CEO since March 2025 upon the exit of Rodney McMullen.

“It has been about a month since I started, and I’ve spent that time learning Kroger from the inside out,” Foran told analysts in a March 5 conference call on fiscal-year results. “I’ve been spending time with Ron and the leadership team, having one-on-one conversations with leaders across the organization and getting out to the stores, distribution centers and manufacturing facilities — and, importantly, also watching how our customers shop.

“I began working with the team to review our strategic plan, and I’ll share more as that work progresses. What I’ve seen so far has reinforced my belief that Kroger has tremendous strengths to build on. We have a loyal customer base, dedicated associates, a strong store network and real momentum in areas like fresh, e-commerce and Our Brands (private label). I’ve also been impressed by the energy I’ve seen in the stores: associates taking ownership of their work and taking pride in serving customers. The team has done excellent work, particularly over the past year, to strengthen the business. And my focus is on how we operationalize our strategy to make us even better.”

The year-end performance report marked Foran’s first earnings call with Kroger, which topped Wall Street’s adjusted EPS projections for the full year and fourth quarter.

For fiscal 2025 ended Jan. 31, net income totaled $1.02 billion, equal to $1.54 per share on the common stock, down from $2.67 billion, or $3.67 per share, in 2024. The drop primarily reflects $1.91 billion in impairment and related charges for facility closures in Kroger’s e-commerce fulfillment network. On an adjusted basis, net earnings were $3.2 billion, or $4.85 per share, versus $3.25 billion, or $4.47 per share, a year earlier. Analysts, on average, had forecast adjusted EPS of $4.80 for 2025.

Fourth-quarter net income came in at $861 million, or $1.35 per share, up from $634 million, or 90¢ per share, a year ago. Adjusted earnings were $812 million, or $1.28 per share, versus $800 million, or $1.14 per share, in the prior-year period. That topped Wall Street’s high-end estimate for adjusted EPS of $1.26.

A month into his tenure as Kroger’s CEO, Greg Foran said his focus is on “how we operationalize our strategy to make us even better.” 

| Photo: The Kroger Co.

“We’re pleased to report another quarter of strong results, capping off a strong year for Kroger,” said Sargent, who led the earnings call. “Importantly, in the final period of the year, we achieved positive market-share growth for the first time this year. For the full year, we nearly doubled our identical sales without fuel from 1.5% to 2.9% and grew earnings per share by 9%, which was at the high end of our earnings expectations.

“This performance speaks for itself. We’re executing on our priorities and delivering results. This year, we’ve been intentional about focusing on what matters most to our customers, and this work has laid the foundation for long-term growth.”

Foran said in the call that Kroger’s strategy “starts with the top line,” noting that “we need to grow sales faster.”

“In my experience, that comes down to giving customers a compelling reason to shop with you by offering great value, great products and a great experience,” he said. “Price is an important part of that equation. Customers need to trust that they’re getting a fair deal every time they walk into our stores. We’ve made progress on price, and I want to keep pushing by pulling unproductive costs out of the business, investing in everyday value, sharpening our promotions, and making sure customers see and feel the difference when they shop with us.

“When you comb competitive prices with a strong, fresh and well-run store, you drive traffic, you grow baskets and you gain share. That’s what I want to accelerate at Kroger. I’ve spent my career in food retail, and running great stores is how you make that happen. It’s about delivering consistently in every store, on every visit, whether shopping in-store or online.”

Kroger turned in flattish top-line growth for fiscal 2025, as net sales inched up 0.4% to $147.64 billion from $147.12 billion a year ago. Excluding fuel sales in 2025 and sales from the divested specialty pharmacy in 2024, full-year net sales rose 3%, the company said. Fourth-quarter net sales grew 1.2% year over year to $34.73 billion from $34.31 billion but were up 2.1% excluding fuel.

Identical sales excluding fuel and adjustment items climbed 2.9% for fiscal 2025, compared with 1.5% in 2024. The gain included a lift in the fourth quarter, as identical sales rose 2.4% after the same percentage increase a year earlier. The quarter also reflected 20% growth in adjusted e-commerce sales, lifting annual digital sales to more than $16 billion, Sargent said.

“Our Brands had a solid quarter,” he said of Kroger’s own-brand portfolio. “Excluding the impact of egg deflation, sales continue to outpace national brands. Simple Truth and Private Selection again led our growth, with customers continuing to choose these products because they deliver high quality and an affordable price. Innovation continues to be a priority. This year, we introduced more than 1,100 new Our Brands products, up from more than 900 last year. A growing number of these products are focused on health, an area where customer demand is growing, and the Our Brands portfolio is well-positioned to lead.”

Sargent said Kroger accelerated new-store investments in 2025, completing 29 major projects.

“In 2026, we expect to increase new store openings by 30%, with plans to expand into two new regions, including Jacksonville and Kansas City, two high-potential markets that will support our long-term growth,” he said.

Looking ahead, Kroger projects fiscal 2026 identical sales growth of 1% to 2% and adjusted net EPS of $5.10 to $5.30, within Wall Street’s estimates of $5.06 to $5.50 before the earnings report.

“Kroger has all the ingredients to win,” Foran said, “and my job is to bring it all together.”