Grocery Outlet Holding Corp. Earnings Recaps
Q1 2026
May 14, 2026
Shares fell 3.6% after Grocery Outlet’s Q1 report as investors were disappointed by the cautious outlook and ongoing margin pressure, despite modest traffic improvements and performance mostly tracking guidance.
Key takeaways
- Q1 revenue rose 3.6% to $1.17 billion, with comparable store sales down 1%, better than the expected declines but still negative.
- Traffic increased roughly 2%, improving through the quarter, but offset by lower units per transaction, signaling weak basket size.
- Gross margin contracted to 29.6%, including a 50 basis point drag from store closures and promotional investments to drive traffic.
- Adjusted EBITDA of $43.1 million was at the high end of guidance; adjusted EPS of $0.05 narrowly exceeded prior forecast by $0.01.
- Management confirmed $20 million in promotional support investments planned for the year, reflecting ongoing margin headwinds and cautious near-term outlook.
Q3 2025
Nov 6, 2025
Grocery Outlet delivered solid third-quarter financial performance, with net sales increasing by 5.4% to $1.17 billion, despite slightly below-target comparable store sales growth of 1.2%.
Key takeaways
- Gross margin held steady at 30.4%, maintaining profitability amidst operational challenges.
- Adjusted EBITDA reached $67 million, exceeding expectations and underpinned by disciplined cost management.
- The company is implementing a store refresh program, with initial pilot stores showing promising results to boost customer engagement.
- Same-store sales growth is projected to be flat to up 1% for Q4, following a course correction in promotional strategies.
- Ongoing enhancements to inventory visibility and forecasting tools are expected to significantly improve operational execution and sales performance by 2026.