Grocery Outlet Holding Corp. Earnings Recaps
Q2 2026
Aug 14, 2026
Shares gained 9.9% following a quarter where Grocery Outlet’s improved opportunistic product offering, disciplined cost management, and enhanced value messaging pushed results notably above outlook, signaling investor confidence in the early turnaround.
Key takeaways
- Revenue rose 1% to $1.19 billion, with comparable store sales down just 0.3%, improving 70 basis points sequentially despite Easter calendar headwinds.
- Traffic increased 1.8%, while basket size declined 2.1%, though improving roughly 100 basis points from Q1.
- Gross margin expanded to 30.2%, driven primarily by lower-than-expected promotional spending.
- Adjusted EBITDA was approximately $66 million and adjusted EPS reached $0.20, both comfortably above company guidance.
- Management’s focus on strengthening opportunistic assortment and value communication began showing tangible results, with targeted marketing and improved store execution poised to support further comp growth.
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.