Kroger continues to demonstrate resilience and strategic focus as it prepares for its first-quarter 2025 earnings call, scheduled for 20 June. Despite ongoing market fluctuations and a tough retail landscape, the company remains committed to shareholder value through steady dividends, share buybacks, and a long-term vision that merges physical retail with digital innovation. This week, Kroger paid out a quarterly dividend of $0.32 per share to its shareholders, reinforcing its reputation as a reliable income stock. Since reinstating its dividend in 2006, the company has delivered a compounded annual growth rate of 13.5% in shareholder payouts.
Digital sales are emerging as a major growth engine for the retailer. In 2024, Kroger reported an 18% increase in digital orders, which now not only contribute to higher basket sizes but also deliver stronger profit margins. Coupled with a $1 billion share repurchase programme, Kroger is signalling to investors that it intends to stay ahead in a sector defined by slim margins and rising expectations. Analysts are watching closely, with many expecting earnings of $1.44 per share this quarter—slightly higher than last year. “Kroger has shown it knows how to evolve without losing its identity,” said one retail analyst in New York. “They’re balancing tech, tradition, and financial discipline in a way that’s rare for legacy grocers.”
The company’s share price currently sits at $66.24, having dipped around 9% since reaching a 2025 high of nearly $73 in April. This modest decline is seen by many investors as an entry point, particularly with the earnings report just weeks away.
However, not everything is smooth sailing. Kroger is still facing legal and regulatory scrutiny over its proposed $24.6 billion merger with rival Albertsons. The U.S. Federal Trade Commission moved earlier this year to block the deal, citing concerns over competition and potential price increases for consumers. In addition to the regulatory pushback, Kroger is now also facing lawsuits from several parties arguing the merger would harm workers and reduce consumer choice.
Despite the setbacks, Kroger remains publicly committed to the merger, insisting it would lower prices, create new union jobs, and allow the combined company to better compete with giants like Walmart and Amazon. As legal proceedings continue, the outcome of this attempted merger could redefine the future of the American supermarket landscape. For now, Kroger is focused on delivering steady value to its shareholders—a message that will no doubt be reinforced in its upcoming earnings call.