Kroger’s Board of Directors increased the company’s share‑repurchase authorization by $2.0 billion, raising the total pool to $2.9 billion. The authorization is permanent and has no expiration date, giving the company the flexibility to buy back shares from the open market or through private transactions as market conditions and strategic priorities evolve.
The move builds on a $7.5 billion authorization announced in December 2024, which followed the termination of Kroger’s merger agreement with Albertsons. Since 2015, Kroger has repurchased roughly 35 % of its outstanding shares, and the new authorization expands the capital‑return toolkit while preserving liquidity for future investments in grocery and e‑commerce operations.
Ron Sargent, Kroger’s chairman and CEO, said the additional authorization reflects the Board’s confidence in the company’s strong growth outlook and balance sheet. He added that Kroger continues to generate durable free cash flow and remains committed to disciplined capital allocation—investing in opportunities that strengthen the business and returning capital in a way that maximizes long‑term value for shareholders.
The expanded repurchase pool signals confidence in Kroger’s ability to generate cash, but it also underscores the company’s dual focus on returning capital and investing in its e‑commerce platform. Kroger is shifting to a hybrid fulfillment model, closing some automated centers while partnering with third‑party delivery services, with the goal of achieving profitability in the digital channel. The company faces competitive pressure from Walmart and Target, and macro‑economic uncertainty has weighed on consumer spending, which has tempered enthusiasm for the buyback announcement.
Investors reacted cautiously. The announcement was met with a muted market response, driven in part by a recent sales miss in the third quarter, analyst downgrades and lowered price targets, and broader macro‑economic concerns. The buyback was viewed as a positive signal of confidence, but it did not offset the negative sentiment generated by recent performance and strategic challenges.
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