Kogar ,One 9.22%, The report was reported on June 19, 2025 for the first quarter of FY 2025, except for a fuel of 3.2% and except for the adjusted EPS of $ 1.49, up to 4%. The management announced a quick store network optimization, focused an elevated focus on core operations, and extended fiscal 2025 guidance to 2.25%-3.25%for equal sale except fuel.

Decision Store Network Customizer combined with core focus

Follow a stagnation on the planned closure annual real estate reviews of about 60 underporing stores in the next 18 months, which took place during the failed merger process Albertson CompaniesThese closures coincide with the completion of 30 major stores projects in this financial year and target an anticipated acceleration, high-development geography at the opening of the financial 2026 and increase the total square footage.

“This morning, for the position of our company for future success, we announced a plan to close about 60 stores in the next eighteen months. We do not take these decisions lightly, but it will make the company more efficient, and Crroger will offer roles to all colleagues working on the currently affected stores in other shops.”
– Ron Sergeant, Chairman and Chief Executive Officer

This active footprint rationalization and simultaneous regeneration strategy should promote the average store productivity metrics structurally. The company is rebuating capital from markets and formats with better long -term returns on investment (ROI) capacity.

E-commerce acceleration with profitability is still elusive

The sale of e-commerce in the first quarter sales year-on-15%, which is supported by the integrated leadership under the Chief Digital Officer Yale Coset and operating improvements such as low pickup weight time. However, the management confirmed that the e-commerce segment remains unprofitable, yet it is a “best profit improvement” on a sequential basis.

“We are seeing improvement in profitability at rising rates. But to be clear on profitability, we are not beneficial at this point. And we should be profitable in our e-commerce business, and we have to do a lot of work.”
– Ron Sergeant, Chairman and Chief Executive Officer

Strong digital revenue growth gained market share and increased domestic engagement. However, the frequent reduction of profitability in e-commerce remains a major execution risk that may require further adaptation or strategic partnership to unlock permanent returns.

Gross margin expansion between price investment and mix shift

FIFO helped by adjustment to the division of croger Specialty Pharmacy, low shrinking and supply chain costs, except for gross margin rate, fuel and adjustment items, or 33 basis points, but partially offset by mixed headwinds from lower-marjine pharmacy sales. In Q1, management applied the price reduction on more than 2,000 additional goods and enhances the mixture of our brands, promoting margin neutrality.

“I think the positive news is that these pricing investments result in better sales, better gross margin and happy customers. So I think it will probably continue to invest in pricing by expanding our gross margin rate.”
– Ron Sergeant, Chairman and Chief Executive Officer

This ability to distribute tangible margin expansion – despite adequate value investment – sheds light on the operational length through product mix, sourcing capacity and private label leadership. These actions took place in the grocery environment.

looking ahead

The management increased the guidance of full -year for equal sale by 2.25% -3.25% for the same sale except fuel for FY2025, expected to land at the mid -point of this range with the second quarter. Fiscal 2025 guidance for net operational benefits and adjusted EPS remains unchanged, reflecting the ongoing caution about macroeconomic uncertainty and continuous fuel headwind. The $ 5 billion accelerated share repatriation (ASR) program is targeted for the third quarter of FY 2025, with the purchase of open market under the remaining $ 2.5 billion authority planned through the end of the financial year.