Kroger Company (KR)

Operating profit margin

Jan 31, 2025 Feb 3, 2024 Jan 31, 2024 Jan 31, 2023 Jan 28, 2023
Operating income US$ in thousands 3,849,000 3,096,000 3,096,000 4,126,000 4,126,000
Revenue US$ in thousands 147,123,000 149,598,000 150,039,000 148,258,000 147,723,000
Operating profit margin 2.62% 2.07% 2.06% 2.78% 2.79%

January 31, 2025 calculation

Operating profit margin = Operating income ÷ Revenue
= $3,849,000K ÷ $147,123,000K
= 2.62%

Operating profit margin is a key financial metric that shows the percentage of revenue that translates into operating profit after accounting for operating expenses. Analyzing the data provided for Kroger Company, we observe fluctuations in the operating profit margin over the past few years.

As of January 28, 2023, the operating profit margin stood at 2.79%, indicating that for every dollar of revenue generated, Kroger retained $0.0279 as operating profit. The margin slightly decreased to 2.78% by January 31, 2023, suggesting stable operational efficiency.

However, there was a noticeable decline in the operating profit margin to 2.06% by January 31, 2024, which may raise concerns about the company's ability to control operating expenses relative to revenue. The margin then improved marginally to 2.07% by February 3, 2024, reflecting some stabilization in profitability.

The most recent data point, January 31, 2025, shows a notable increase in the operating profit margin to 2.62%, which could signal a positive trend in operational performance and cost management for Kroger. Overall, these fluctuations in the operating profit margin indicate the company's varying ability to generate profit from its core business activities.


Peer comparison

Jan 31, 2025

Company name
Symbol
Operating profit margin
Kroger Company
KR
2.62%
Grocery Outlet Holding Corp
GO
1.79%
Sprouts Farmers Market LLC
SFM
6.54%