Have you ever wondered about the financial performance of a massive retail giant like Kroger? It's a common question, and one that gives us a fascinating glimpse into the world of large-scale grocery operations. Understanding a company's financial health isn't just for investors; it's also a great way to see how economic trends, consumer habits, and strategic decisions impact a business that touches millions of lives.
So, let's dive deep into the numbers and find out exactly how much Kroger made last year. We'll break it down step-by-step, making sense of the impressive figures and complex terminology you might encounter in a financial report. Ready to become a financial detective? Let's get started!
Step 1: Pinpointing the Right "Last Year"
The first and most important step is to define what "last year" means in a corporate context. It's not always as simple as the calendar year (January 1st to December 31st).
Understanding Fiscal Years: Many companies, including Kroger, operate on a fiscal year. A fiscal year is a 12-month period that a company uses for its financial reporting. Kroger's fiscal year typically ends on the first Saturday of February. This means that a financial report for "fiscal year 2024" would cover a period that started in early 2024 and ended in early 2025. It's crucial to look for this detail to ensure you're reviewing the correct data.
Identifying the Target Report: To answer your question, we need to look at Kroger's financial results for its most recently completed fiscal year. Based on the most current available information, we are going to analyze the financial results for Kroger's fiscal year 2024, which concluded in early 2025.
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| How Much Did Kroger Make Last Year |
Step 2: Uncovering the Big Picture - Total Sales
This is often the most exciting number. Total sales, or revenue, represent the total amount of money a company has brought in from its business activities before any expenses are deducted.
The Top-Line Figure: For fiscal year 2024, Kroger reported total sales of approximately $147.1 billion.
Breaking Down the Sales: It's important to note that this number includes sales from all of Kroger's various operations. This isn't just about groceries; it also includes:
Sales from their fuel centers.
Sales from their pharmacies.
Sales from their "Our Brands" private label products, which are a significant and growing part of their business.
A Note on Context: When comparing this number to the previous year, it's essential to consider factors like an extra week in the fiscal year and the sale of certain business segments. For example, the prior fiscal year (2023) was a "53-week year," which can make direct comparisons a bit tricky.
Tip: Read at your own pace, not too fast.
Step 3: Digging Deeper - Net Earnings
While total sales are impressive, they don't tell the whole story. A company's net earnings (also known as net income or profit) is the amount of money left over after all expenses, taxes, and other costs have been paid. This is the ultimate measure of profitability.
The Bottom-Line Figure: For fiscal year 2024, Kroger's net earnings were approximately $2.67 billion.
Understanding the Terminology: You may also see the term "Earnings Per Share" (EPS). For fiscal year 2024, Kroger reported an EPS of $3.67 per diluted common share. This is a key metric for investors, as it represents the portion of a company's profit allocated to each outstanding share of common stock.
Step 4: Accounting for Adjustments and Nuances
Financial reports often include "adjusted" figures to give a clearer picture of the company's core performance. This is where the detective work really comes in.
Why are there "Adjusted" Numbers? Companies use adjusted figures to exclude one-time or non-recurring items that might skew the reported profit. This can include things like:
Merger-related costs: Kroger has been involved in significant merger activities, which can result in considerable one-off expenses.
LIFO charges: The Last-In, First-Out (LIFO) accounting method can create charges that impact profitability, and companies often report a number without this charge for a more consistent comparison.
Gains or losses from asset sales: For example, the sale of the Kroger Specialty Pharmacy business in 2024 generated a gain that was factored into their reported results.
The Adjusted Picture: When you look at the adjusted figures, you often get a better sense of the company's operational strength. For fiscal year 2024, Kroger's Adjusted EPS was $4.47. This adjusted figure provides a more stable and comparable view of the company's profitability from its ongoing business operations.
Summary of Kroger's Financial Performance for Fiscal Year 2024
To wrap it all up, here are the key takeaways from Kroger's most recent full-year financial report:
Tip: Don’t skim past key examples.
Total Sales (Revenue): ~$147.1 billion
Net Earnings (Profit): ~$2.67 billion
Earnings Per Share (EPS): $3.67
Adjusted Earnings Per Share (Adjusted EPS): $4.47
It's a testament to the company's scale and operational efficiency that it can generate such a large amount of revenue while maintaining a healthy profit margin in a highly competitive market.
10 Related "How To" FAQ Questions
How to Find a Company's Annual Financial Reports?
You can typically find a company's financial reports, like the Annual Report (Form 10-K), on their official Investor Relations website. Look for a section titled "Financials," "SEC Filings," or "Annual Reports."
How to Understand the Difference Between a Fiscal Year and a Calendar Year?
A calendar year is the standard January 1st to December 31st. A fiscal year is any 12-month period a company chooses for its financial reporting. It's important to check the company's specific fiscal year dates to ensure you're looking at the right period.
Tip: Rest your eyes, then continue.
How to Interpret "Revenue" vs. "Net Earnings"?
Revenue is the total money a company makes from sales before expenses. Net earnings is the profit left over after all expenses, including costs of goods sold, operating expenses, interest, and taxes, are deducted from revenue.
How to Find a Company's "Earnings Per Share" (EPS)?
EPS is a key metric found in a company's income statement, which is a part of its financial report. It's calculated by dividing the company's net earnings by the number of outstanding shares of stock.
How to Read an SEC Filing like a Form 10-K?
A Form 10-K is a comprehensive annual report required by the U.S. Securities and Exchange Commission (SEC). Look for the "Financial Statements" section, which includes the Balance Sheet, Income Statement, and Statement of Cash Flows. The "Management's Discussion and Analysis" section is also very useful for understanding the company's performance.
How to Analyze the Impact of Fuel Sales on a Grocery Retailer?
Fuel sales often have a lower profit margin than grocery sales. Companies like Kroger will often report their "identical sales without fuel" to provide a clearer picture of their core grocery business performance, as it's less volatile and a better indicator of underlying trends.
Tip: Stop when you find something useful.
How to Understand the Role of a "LIFO Charge"?
LIFO (Last-In, First-Out) is an accounting method for inventory. In a period of rising prices, the LIFO method can lead to a "LIFO charge," which is an expense that reduces a company's reported profit. Many companies will provide adjusted numbers to exclude this charge.
How to Differentiate Between GAAP and Non-GAAP Financial Measures?
GAAP (Generally Accepted Accounting Principles) are standard rules for financial reporting. Non-GAAP measures, often referred to as "adjusted" figures, are metrics a company uses to provide additional insights by excluding certain items. While they can be helpful, it's important to understand what is being excluded.
How to Track a Company's Stock Performance?
You can track a company's stock performance using various financial news websites (like Nasdaq or Bloomberg), investment apps, or the company's own Investor Relations page, which often includes a real-time stock chart and historical data.
How to Understand What a Company's "Our Brands" Strategy Means for its Financials?
"Our Brands" refers to a company's private label products. By developing and selling its own brands, a retailer can often achieve higher profit margins compared to selling national brands, as they control the entire supply chain from production to the shelf.
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