Grocery Outlet Q2 results beat estimates on new store openings
GO•Drivers of the quarter
- Store openings and closures — Net sales growth was driven by new store openings, partly offset by decreased sales from store closures under the Optimization Plan.
- Transaction size and traffic — Comparable store sales declined due to a 2.1% decrease in average transaction size, partially offset by a 1.8% increase in the number of transactions.
- Promotions and markdowns — Gross margin declined due to product promotions to drive sales and inventory markdowns and write-offs associated with store closures under the Optimization Plan.
Full-year outlook raised
The company raised its fiscal 2026 net sales outlook to $4.70 billion to $4.72 billion.
It expects fiscal 2026 comparable store sales to decline 0.5% to flat, adjusted EBITDA of $225 million to $235 million, and diluted adjusted EPS of $0.51 to $0.55.
Q2 results beat estimates
Grocery Outlet said fiscal second-quarter net sales rose 1.1%, beating analyst expectations. Adjusted EPS for the quarter also beat consensus.
Comparable store sales fell 0.3% as average transaction size declined.
