Kroger Reports Significant Third Quarter Loss Amid eCommerce Growth
Cincinnati, Thursday, 4 December 2025.
Kroger’s Q3 2025 results reveal a $1.541 billion operating loss despite a 17% rise in eCommerce sales. The company aims for eCommerce profitability by 2026.
Overview of Financial Performance
The Kroger Co. (NYSE: KR) has reported a significant operating loss of $1.541 billion in the third quarter of 2025. This loss includes $2.6 billion in impairment and related charges for its automated fulfillment network [1]. Compared to the previous year, where Kroger reported a profit of $0.84 per share, the current quarter’s results reflect a substantial downturn. The loss per share stood at $2.02, a stark contrast to the $0.84 profit per share from the same period last year [2].
eCommerce Growth and Strategic Focus
Despite the financial setbacks, Kroger’s eCommerce sector has shown robust growth, with sales increasing by 17% in the third quarter of 2025 [1]. This expansion is part of Kroger’s broader strategy to enhance its digital platform, aiming for eCommerce profitability by 2026. Chairman and CEO Ron Sargent highlighted that the company has completed a strategic review, positioning its online segment for future profitability [1][3].
Updated Guidance and Market Reaction
Kroger has adjusted its guidance for the fiscal year 2025, narrowing its identical sales growth expectations without fuel to between 2.8% and 3.0% [1]. The company also raised the lower end of its Adjusted EPS guidance to a range of $4.75 to $4.80 per share [3]. However, these adjustments did not prevent a decline in Kroger’s stock price, which fell by over 6% following the earnings announcement [4].
Challenges and Future Outlook
Kroger’s financial results are influenced by several external factors, including labor negotiations, changes in the unemployment rate, and competitive pressures [5]. The company remains committed to enhancing customer experience and strengthening its operational foundation to support long-term growth. Analysts maintain a moderate buy consensus for Kroger’s stock, with expectations of future growth driven by strategic investments in technology and digital platforms [2][5].