Core Viewpoint - Grocery Outlet Holding Corp. (GO) has experienced a significant decline in stock value since its IPO in June 2019, following a period of private equity ownership. However, the stock is now considered attractively valued, presenting potential investment opportunities [1]. Group 1 - The stock has been on a broadly downward trajectory since its IPO [1]. - The company is now viewed as attractively valued, indicating a potential turnaround or investment opportunity [1]. - The investment strategy focuses on value-oriented ideas, special situations, and contrarian tendencies, particularly in mid/small cap stocks [1].

EMERYVILLE, Calif., Jan. 26, 2026 (GLOBE NEWSWIRE) -- Grocery Outlet Holding Corp. (NASDAQ: GO) ("Grocery Outlet" or the "Company"), a high-growth, extreme value retailer of quality, name-brand consumables and fresh products, today announced that it raised enough funds to provide two million meals* to people facing hunger through its holiday campaign with Feeding America®, the nation’s largest hunger-relief organization. The initiative, which ran from mid-November through December 31, was part of Grocery Ou ...

Core Insights - Grocery Outlet Holding Corp. has introduced its top Food and Beverage Xtreme Value™ Tips for 2026, aimed at helping consumers maximize savings while enjoying quality products [1][2] Group 1: Savings Strategies - Grocery Outlet emphasizes the importance of frequent shopping to discover new deals and unique products, highlighting a current promotion of a dozen eggs for 99 cents [3] - The company promotes its private label products as offering exceptional quality and value, serving as smart alternatives to national brands [5] - The frozen food aisle is presented as a cost-effective option for stocking up on meals and ingredients, providing convenience and value [6] Group 2: Technology and Engagement - Grocery Outlet encourages customers to download its Bargain Market app to stay updated on the latest deals and exclusive offers, facilitating better shopping planning [7] Group 3: Product Exploration - The company invites shoppers to explore its diverse wine selection, which offers great value for those willing to try new varietals and regions [8] - Grocery Outlet advises consumers to stock up on essentials like private label coffee to combat rising prices, suggesting that smart shopping today can lead to significant savings in the future [9] Group 4: Company Overview - Grocery Outlet is a high-growth, extreme value retailer based in Emeryville, California, with over 560 stores across various states, focusing on quality, name-brand consumables and fresh products [11][12]

Grocery Outlet Holding Corp. announced Tuesday that Executive Vice President and Chief Purchasing Officer Steve Wilson will retire March 20 after 31 years with the discount grocer. Matt Delly, who joined Grocery Outlet last year as chief merchandising officer, will take on expanded responsibilities as chief merchandising and purchasing officer. In that role, he will oversee both purchasing and merchandising operations.President and CEO Jason Potter said Wilson played a key role in developing the company’s p ...

Core Insights - Grocery Outlet Holding Corp. announced the retirement of Steve Wilson, EVP and Chief Purchasing Officer, effective March 20, 2026, after 31 years of service [1] - Matt Delly, who joined the company last year as Chief Merchandising Officer, will take over as Chief Merchandising and Purchasing Officer, integrating the purchasing and merchandising functions to enhance efficiency and performance [1][3] Leadership Transition - Steve Wilson has been pivotal in shaping Grocery Outlet's product and purchasing strategy, building a strong buying team and critical supplier relationships [2] - Wilson will assist in the transition process to ensure a smooth integration of the purchasing and merchandising functions [2] Strategic Objectives - The integration under Matt Delly's leadership aims to advance Grocery Outlet's efforts to become a more effective selling organization [3] - Delly is recognized for his leadership and operational discipline, which are expected to improve current efficiency and expand future growth opportunities [3] Company Overview - Grocery Outlet is a high-growth, extreme value retailer with over 560 stores across multiple states, focusing on quality, name-brand consumables and fresh products [4]

Core Viewpoint - Grocery Outlet Holding Corp. is expanding its presence on the East Coast with the opening of a new store in Falls Church, Virginia, on February 12, 2026, as part of its national growth strategy [1][2]. Group 1: Expansion and Growth Strategy - The Virginia launch is a significant milestone in Grocery Outlet's long-term growth strategy, emphasizing the company's commitment to providing Xtreme Value™ to new communities [2]. - The new store will offer products at prices 40% to 70% lower than conventional retailers, particularly benefiting areas previously considered food deserts [2][3]. - Grocery Outlet currently operates over 560 stores across various states, continuously evaluating growth opportunities to help consumers save on name-brand items [3][4]. Group 2: Community Impact and Offerings - The company aims to assist families in stretching their budgets without compromising on quality, providing a mix of unique finds and savings on everyday grocery essentials [3]. - Virginia customers will have access to exceptional deals on a wide selection of premium wines, enhancing the shopping experience [2].

Core Insights - Rivermont Capital Management has significantly increased its stake in Grocery Outlet by nearly 1.1 million shares, valued at approximately $21.67 million as of September 30, indicating investor confidence despite recent stock performance [1][2]. Company Overview - Grocery Outlet operates a network of independently run stores across 16 states, focusing on offering name-brand products at discounted prices, appealing to value-conscious consumers [4][6]. - The company's market capitalization stands at $1.01 billion, with a trailing twelve months (TTM) revenue of $4.57 billion and a net income of -$4.44 million [4]. Financial Performance - In the third quarter, Grocery Outlet reported a 5.4% increase in net sales to $1.17 billion, driven by new store openings and increased customer traffic, despite a decline in average transaction size and compressed margins [5]. - Adjusted EBITDA for the quarter was $66.7 million, down from $72.3 million the previous year, attributed to increased promotions and restructuring costs [5]. Market Context - Grocery Outlet's stock has decreased nearly 40% over the past year, significantly underperforming the S&P 500, which has risen about 15% [3]. - The company ended the quarter with 563 stores and plans to continue selective expansion, with management optimistic about store refresh initiatives potentially boosting same-store sales by 2026 [8].

Core Viewpoint - Grocery Outlet Holding Corp. reported mixed results for Q3 2025, with earnings exceeding estimates but declining year-over-year, while net sales fell short of expectations despite a year-over-year increase [3][4][5]. Financial Performance - Adjusted earnings were 21 cents per share, beating the Zacks Consensus Estimate of 19 cents but down from 28 cents in the previous year [4]. - Net sales reached $1,168.2 million, missing the Zacks Consensus Estimate of $1,182 million, but reflecting a 5.4% year-over-year growth [5]. - Comparable-store sales increased by 1.2%, driven by a 1.8% rise in transactions, offset by a 0.6% decrease in average transaction size [5]. Margin and Cost Analysis - Gross profit grew 3% year-over-year to $355.1 million, with a gross margin contraction of 70 basis points to 30.4% [6]. - SG&A expenses rose 8.7% to $331 million, representing 28.3% of net sales, primarily due to new store costs and higher incentive compensation [7]. - Adjusted EBITDA was $66.7 million, down 7.7% year-over-year, with a margin decrease of 80 basis points to 5.7% [7]. Store Expansion and Strategy - The company added 13 new stores and closed two, totaling 563 stores across 16 states, with plans to open 37 net new stores in 2025 [8]. - A store refresh program was initiated in select pilot stores, with plans to expand to 20 stores by year-end 2025 and at least 150 stores by the end of 2026 [8]. Financial Health - Cash and cash equivalents stood at $52.1 million, with long-term debt of $481.5 million and stockholders' equity of $1,198.6 million [9]. - The company had $175 million remaining borrowing capacity under its revolving credit facility, with a net leverage ratio of 1.8x adjusted EBITDA [9]. 2025 Outlook - Management revised fiscal 2025 guidance, expecting net sales between $4.70 billion and $4.72 billion, and comparable-store sales growth of 0.6-0.9% [11]. - Adjusted EBITDA is projected between $258 million and $262 million, with adjusted earnings expected to be 78 to 80 cents per share [12]. Industry Context - Grocery Outlet is part of the Zacks Consumer Products - Staples industry, which has seen mixed performance, with Procter & Gamble reporting a 3% year-over-year revenue increase [18].

Question-and-Answer SessionGrocery Outlet is now a turnaround story in a way of reengineering growth value proposition engineered by Jason. I will start by asking maybe to level set, you put a press release out this morning to talk about the context of it, and then we will get into our discussion. Thank you.Jason PotterPresident, CEO & Director Thanks, Simeon. Well, good morning, everyone -- I guess, good afternoon. Yes, we put out an 8-K this morning. One of the things that had transpired at the -- our las ...

Grocery Outlet Conference Call Summary Company Overview - **Company**: Grocery Outlet - **Industry**: Food Retail Key Points and Arguments Financial Performance - SNAP benefits disruption impacted sales, accounting for approximately 9% of total sales, leading to an 8% decline in SNAP sales in November [2][3] - Non-SNAP sales also experienced a half-point deceleration during the same period [3] - Despite challenges, positive traffic was maintained, indicating customer engagement [4] Consumer Behavior - Lower-income customers are under financial pressure, leading to a shift towards lower-priced items and smaller sizes [5][18] - The company observed a stable trend in units per transaction, but a drop in Average Unit Retail (AUR) was noted, indicating a trade-down effect [5][18] Store Experience and Operations - The company is implementing a "Refresh program" to enhance the in-store experience based on customer feedback [12] - Changes include better navigation, co-locating produce and meat, and clearer value communication, resulting in mid-single-digit sales increases [15][16] - Pilot stores have shown significant sales improvements, with some stores reporting sales increases of over 100% after layout changes [22] Marketing and Communication - The company is focusing on clearer in-store communication and external marketing to enhance customer understanding of value propositions [39] - Customer testimonials highlight the effectiveness of the store's pricing and value, with customers expressing satisfaction with their savings [39][45] Growth Strategy - The company plans to slow down new store openings to focus on improving core business operations, with a target of 30-35 net new stores next year [35][36] - Emphasis on infill growth rather than new market expansion to enhance returns on invested capital [35] Supply Chain and Inventory Management - Improvements in forecasting and inventory management are being implemented to reduce waste and enhance product freshness [41][42] - The company is addressing historical issues with visibility in inventory management, which has affected gross margins [59][60] IO (Independent Operator) Engagement - Increased communication and support for IOs are prioritized to ensure alignment and operational success [53] - The company is refining its pipeline to attract experienced retail talent for IO positions [57] Margin Stability - Margins have stabilized, but there are ongoing opportunities to reduce shrink and improve inventory management [60][61] Future Outlook - The company is optimistic about the rollout of operational changes across more than 150 stores next year, aiming for significant improvements in sales and customer satisfaction [65] Additional Important Insights - The company is focusing on building trust with customers and IOs through consistent product availability and clear communication of value [50][64] - The competitive landscape shows a lack of direct competitors in the closeout off-price grocery space, positioning Grocery Outlet favorably [51] This summary encapsulates the key insights from the Grocery Outlet conference call, highlighting the company's current challenges, strategic initiatives, and future growth plans.