Kroger’s Fourth Quarter and Fiscal Year 2024 Results: A Closer Look
The Kroger Co. recently reported its financial results for the fourth quarter and fiscal year 2024. The company posted impressive numbers, with identical sales without fuel increasing by 2.4%, leading to an operating profit of $912 million and earnings per share (EPS) of $0.90. After adjusting for inventory accounting, Kroger reported an operating profit of $1,174 million and an adjusted EPS of $1.14.
Digital Sales Growth
One of the most notable achievements was the 11% digital sales growth, excluding the 53rd week in 2023. This growth underscores Kroger’s commitment to its digital transformation and its ability to adapt to changing consumer preferences.
Fiscal 2024 Highlights
Looking at the fiscal year 2024 as a whole, Kroger reported identical sales without fuel increasing by 1.5%. This resulted in an operating profit of $3.8 billion and an EPS of $3.67. After adjusting for inventory accounting, the company reported an operating profit of $4.7 billion and an adjusted EPS of $4.47.
Digital Sales and Media Revenue
Kroger’s digital sales continued to grow, with more than $13 billion in sales recorded for the fiscal year. The media business also contributed significantly, with a 17% increase in revenue, excluding the 53rd week in 2023. This helped generate $1.35 billion in operating profit from alternative profit businesses.
Associate Wages and Benefits
Kroger also announced an increase in associate wages, with the average hourly wage now exceeding $19, and the rate factoring in comprehensive benefits exceeding $25. This represents a 38% increase in rate over the last seven years.
Share Repurchase Program
In addition, Kroger commenced a $5.0 billion Accelerated Share Repurchase (ASR) program, which will be completed under the company’s $7.5 billion share repurchase authorization.
What Does This Mean for Consumers?
For consumers, Kroger’s strong financial performance and commitment to digital transformation mean continued investment in improving the shopping experience. This includes enhancing the digital platform, expanding delivery and pickup options, and investing in new technologies to make shopping more convenient and efficient.
What Does This Mean for the World?
On a larger scale, Kroger’s financial results highlight the growing importance of digital transformation in the retail industry. As consumer preferences continue to shift towards online shopping, companies that invest in digital platforms and technologies will be better positioned to compete and thrive.
Conclusion
In conclusion, Kroger’s fourth quarter and fiscal year 2024 results demonstrate the company’s strong financial position and commitment to digital transformation. With continued investment in digital platforms, technologies, and associate wages, Kroger is well-positioned for long-term sustainable growth. The company’s results also underscore the importance of digital transformation in the retail industry and the need for companies to adapt to changing consumer preferences.
- Kroger reported strong financial results for the fourth quarter and fiscal year 2024
- Identical sales without fuel increased by 2.4% in the fourth quarter and 1.5% for the fiscal year
- Digital sales grew by 11% in the fourth quarter and exceeded $13 billion for the fiscal year
- Media revenue increased by 17% in the fiscal year, contributing to $1.35 billion in operating profit
- Kroger announced an increase in associate wages, with the average hourly wage now exceeding $19 and comprehensive benefits factoring in more than $25
- The company commenced a $5.0 billion Accelerated Share Repurchase program
- Kroger’s results highlight the importance of digital transformation in the retail industry
