10.

EARNINGS PER COMMON SHARE

Net earnings attributable to The Kroger Co. per basic common share equals net earnings attributable to The Kroger Co. less income allocated to participating securities divided by the weighted average number of common shares outstanding. Net earnings attributable to The Kroger Co. per diluted common share equals net earnings attributable to The Kroger Co. less income allocated to participating securities divided by the weighted average number of common shares outstanding, after giving effect to dilutive stock options. The following table provides a reconciliation of net earnings attributable to The Kroger Co. and shares used in calculating net earnings attributable to The Kroger Co. per basic common share to those used in calculating net earnings attributable to The Kroger Co. per diluted common share:

For the year ended

For the year ended

For the year ended

 

January 31, 2026

February 1, 2025

February 3, 2024

 

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Per

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Per

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Per

 

Earnings

Shares

Share

Earnings

Shares

Share

Earnings

Shares

Share

 

(in millions, except per share amounts)

(Numerator)

(Denominator)

Amount

(Numerator)

(Denominator)

Amount

(Numerator)

(Denominator)

Amount

 

Net earnings attributable to The Kroger Co. per basic common share

$

1,009

 

652

$

1.55

$

2,645

 

715

$

3.70

$

2,146

 

718

$

2.99

Dilutive effect of stock options

 

3

 

5

 

7

Net earnings attributable to The Kroger Co. per diluted common share

$

1,009

 

655

$

1.54

$

2,645

 

720

$

3.67

$

2,146

 

725

$

2.96

The Company had combined undistributed and distributed earnings to participating securities totaling $7, $20 and $18 in 2025, 2024 and 2023, respectively.

The Company had stock options outstanding for approximately 1.3 million, 2.9 million and 2.8 million shares, respectively, for the years ended January 31, 2026, February 1, 2025 and February 3, 2024, which were excluded from the computations of net earnings per diluted common share because their inclusion would have had an anti-dilutive effect on net earnings per diluted share.

Historical Timeline

Fiscal YearFiled
2026Mar 31, 2026Showing above
2025Apr 1, 2025
2024Apr 2, 2024
2023Mar 28, 2023
2022Mar 29, 2022
2021Mar 30, 2021
2020Apr 1, 2020
2019Apr 2, 2019
2018Apr 3, 2018
2017Mar 28, 2017

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.