Financial Data and Key Metrics Changes - Net sales increased by 8.5% to $1,130,000,000 compared to the previous year, driven by new store openings and a 30 basis point increase in comparable store sales [6][29] - Gross profit rose by 12.7% to $342,400,000, with gross margin improving by 110 basis points to 30.4%, exceeding expectations due to better inventory management [30] - Adjusted EBITDA increased by 31.7% to $51,900,000, with an adjusted EBITDA margin of 4.6%, up 80 basis points from the prior year [33] - Net loss was $23,300,000 or negative $0.24 per diluted share, compared to a net loss of $1,000,000 or negative $0.01 per diluted share last year [32] Business Line Data and Key Metrics Changes - The company opened 11 new stores and closed one, ending the quarter with 543 stores across 16 states, on track to meet the annual target of 33 to 35 new stores [29] - Comparable store sales growth was driven by a 2.3% increase in the number of transactions, partially offset by a 2% decrease in average transaction size [29] Market Data and Key Metrics Changes - The company is moderating its outlook for annual comparable store sales growth due to current business trends and macroeconomic uncertainties [22][28] - The first quarter was impacted by the Easter holiday shift, affecting sales performance [29] Company Strategy and Development Direction - The company is focusing on four strategic imperatives: improving new store performance, securing top talent, addressing execution gaps, and enhancing execution at scale [9][10] - Plans include piloting a new commercial execution playbook and clustering stores in new markets to optimize returns on invested capital [11][12] - The company aims to strengthen relationships with independent operators and suppliers to enhance the overall business model [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term addressable market and the potential for improved costs and margins with focused execution [9] - The company is committed to enhancing the in-store experience and driving customer loyalty through better execution and value delivery [23][24] - Management acknowledged the need to balance margin maintenance with market share defense in the current environment [92] Other Important Information - The company incurred $33,900,000 in restructuring charges during the first quarter, primarily related to lease terminations and employee severance [32] - The effective tax rate for the quarter was 19.7%, a significant decrease from 60% in the previous year [33] Q&A Session Summary Question: Strategy and Growth Level - Management emphasized a focus on execution and building a loved brand, with priorities on capabilities to enhance customer experience and drive loyalty [40][41] Question: Second Quarter Guidance and Comp Trajectory - Management discussed ongoing commercial and execution activities aimed at improving sales, with expectations for modest sequential improvement in the back half of the year [43][47] Question: Real-Time Order Guide Impact - Initial feedback on the real-time order guide has been positive, with improved fill rates expected to translate into sales over time [50][51] Question: Gross Margin Performance - Improved shrinkage and inventory management contributed to better-than-expected gross margin performance, with sustainability anticipated throughout the year [53][55] Question: Opportunistic Sourcing Trends - Strong supplier relationships continue to provide opportunities for opportunistic sourcing, with efforts to enhance visibility and communication with independent operators [58][60] Question: Basket Size and Consumer Behavior - Management noted that while traffic remains strong, there has been a decrease in basket size, attributed to execution-related issues rather than a shift in consumer behavior [70][71] Question: Restructuring Plan and Cash Expenditures - The restructuring plan remains within the original cost range, with no impact on profitability guidance for the year [90] Question: Market Share and Margin Trade-offs - Management is focused on balancing margin maintenance with market share defense, with plans to react quickly to pricing changes as needed [92][94] Question: United Grocery Outlet Integration - Sales growth at United Grocery Outlet is in line with expectations, with integration plans set for late 2026 [97]

Financial Data and Key Metrics Changes - Net sales increased by 8.5% to $1,130,000,000 compared to the previous year, driven by new store openings and a 30 basis point increase in comparable store sales [29][30] - Gross profit rose by 12.7% to $342,400,000, with gross margin improving by 110 basis points to 30.4%, exceeding expectations due to better inventory management [30] - Adjusted EBITDA increased by 31.7% to $51,900,000, with an adjusted EBITDA margin of 4.6%, up 80 basis points from the prior year [32][33] - Net loss was $23,300,000 or negative $0.24 per diluted share, compared to a net loss of $1,000,000 or negative $0.01 per diluted share last year [31] Business Line Data and Key Metrics Changes - The company opened 11 new stores and closed one, ending the quarter with 543 stores across 16 states, on track to meet the annual target of 33 to 35 new stores [29][30] - Comparable store sales growth was driven by a 2.3% increase in the number of transactions, partially offset by a 2% decrease in average transaction size [29] Market Data and Key Metrics Changes - The company is moderating its outlook for annual comparable store sales growth due to current business trends and macroeconomic uncertainties [21][28] - The first quarter was impacted by the shift of the Easter holiday into the second quarter, affecting sales performance [29] Company Strategy and Development Direction - The company is focusing on four strategic imperatives: improving new store performance, securing top talent, addressing execution gaps, and enhancing the ability to execute at scale [9][10] - Plans include piloting a new commercial execution playbook and clustering stores in new markets to optimize returns on invested capital [10][11] - The company aims to strengthen relationships with independent operators and suppliers to enhance the overall business model [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term addressable market and the potential for improved costs and margins with focused execution [8][22] - The company is committed to enhancing the in-store experience and driving customer loyalty through better execution and value delivery [22][24] - Management acknowledged the need to balance margin maintenance with market share defense in the current environment [94] Other Important Information - The company incurred $33,900,000 in restructuring charges during the first quarter, which includes lease termination costs and other related expenses [31] - The effective tax rate for the quarter was 19.7%, a significant decrease from 60% in the same quarter last year [33] Q&A Session Summary Question: Strategy and Growth Level - Management emphasized the importance of execution and building a loved brand, focusing on capabilities to enhance customer experience and drive loyalty [41][42] Question: Second Quarter Guidance and Comp Trajectory - Management discussed ongoing commercial and execution activities aimed at improving sales, despite a softer basket size and macroeconomic uncertainties [44][47] Question: Real-Time Order Guide Impact - Initial feedback on the real-time order guide has been positive, with improved fill rates expected to enhance sales over time [51][52] Question: Gross Margin Performance - Improved shrinkage and better inventory management contributed to better-than-expected gross margin performance, with expectations for sustainability throughout the year [54][56] Question: Opportunistic Sourcing Trends - Strong supplier relationships continue to provide opportunities for opportunistic sourcing, with a focus on enhancing visibility and execution [60][61] Question: KVI and Field Organization - Management is focused on tightening key value indicators and considering potential investments in field organization support to enhance store performance [63][66] Question: Basket Size Insights - The decrease in basket size is attributed to fewer items per basket, with ongoing efforts to improve inventory fulfillment and customer experience [69][72] Question: April Trends and Consumer Behavior - April showed some softness in sales, with management noting uncertainty in consumer behavior but no evidence of significant trading down [76][90] Question: Restructuring Plan and Guidance Impact - Restructuring costs are expected to remain within the original range, with no significant impact on profitability guidance for the year [91][92] Question: United Grocery Outlet Integration - Sales growth at United Grocery Outlet is in line with expectations, with integration plans set for late 2026 [99]

Financial Performance - Net sales increased by 8.5% to $1.13 billion, driven by new store sales and a 0.3% increase in comparable store sales[4]. - Adjusted net income rose by 47.7% to $13.0 million, or $0.13 diluted adjusted earnings per share, compared to $8.8 million, or $0.09 diluted adjusted earnings per share last year[4][9]. - Adjusted EBITDA increased by 31.7% to $51.9 million, representing 4.6% of net sales[4][9]. - The company reported a net loss of $23,317 for the 13 weeks ended March 29, 2025, compared to a net loss of $1,025 for the same period in 2024, indicating a significant decline in profitability[28]. - Basic net loss per share was $0.24 for the 13 weeks ended March 29, 2025, compared to $0.01 for the same period in 2024[28]. Operational Highlights - The company opened 11 new stores and closed 1, ending the quarter with 543 stores across 16 states[5]. - The company operates over 540 stores across multiple states, indicating a strong retail presence and potential for market expansion[25]. - The restructuring plan is expected to incur total costs between $59 million and $61 million, with $40 million to $42 million anticipated as cash expenditures[10]. - The company incurred restructuring charges of $33,875 during the 13 weeks ended March 29, 2025, indicating ongoing operational adjustments[28]. Financial Position - Total assets as of March 29, 2025, were $3,271,437, up from $3,173,821 as of December 28, 2024, reflecting a growth of 3.1%[30]. - Total liabilities increased to $2,091,858 as of March 29, 2025, compared to $1,976,437 at the end of 2024, marking a rise of 5.8%[30]. - Cash and cash equivalents decreased to $50,910 at the end of the period from $62,828 at the beginning, a decline of 18.5%[33]. Guidance and Future Outlook - The company maintains its fiscal 2025 guidance for net sales between $4.7 billion and $4.8 billion, with adjusted EBITDA expected to be between $260 million and $270 million[13]. - Capital expenditures for the quarter were $65.3 million, an increase of $16.0 million compared to the same period last year[11]. Margin Analysis - Gross margin improved to 30.4%, up from 29.3% year-over-year, primarily due to better inventory management[4][6]. - Gross profit for the same period was $342,445, representing a gross margin of 30.4%, up from $303,945 and a gross margin of 29.2% in the prior year[28].

Financial Performance - Net sales increased by 8.5% to $1.13 billion in Q1 fiscal 2025, driven by new store sales and a 0.3% increase in comparable store sales [4][7] - Gross profit rose by 12.7% to $342.4 million, with gross margin improving by 110 basis points to 30.4% year-over-year [5][7] - Adjusted net income increased by 47.7% to $13.0 million, or $0.13 diluted adjusted earnings per share, compared to $8.8 million, or $0.09 diluted adjusted earnings per share in the prior year [9][32] Operational Highlights - The company opened 11 new stores and closed 1, ending the quarter with 543 stores across 16 states [4][7] - Transactions increased by 2.3%, while average transaction size decreased by 2.0% [4] - Selling, general and administrative expenses rose by 9.1% to $331.1 million, representing 29.4% of net sales [6][7] Restructuring Plan - The company initiated a restructuring plan aimed at improving long-term profitability and cash flow, which includes terminating leases for 28 unopened stores and reducing headcount [11] - Total costs under the restructuring plan are estimated to be between $59 million and $61 million, with $40 million to $42 million expected as cash expenditures [11] Cash Flow and Capital Expenditures - Net cash provided by operating activities was $58.9 million, a significant increase from $7.8 million in the same period last year, primarily due to improvements in working capital [14] - Capital expenditures for Q1 fiscal 2025 were $65.3 million, an increase of $16.0 million compared to the prior year, driven by supply chain investments and new store openings [14] Executive Changes - The company announced the retirement of Ramesh Chikkala, EVP and COO, and Pamela Burke, EVP and Chief Stores Officer, with searches for new leadership commencing [12]

Core Viewpoint - Grocery Outlet Holding Corp. is set to announce its first-quarter fiscal 2025 earnings results, with investors keenly observing its performance amidst challenges and growth opportunities in the competitive grocery sector [1] Revenue and Earnings Estimates - The Zacks Consensus Estimate for revenues is $1,128 million, indicating an 8.8% year-over-year improvement [2] - The earnings per share estimate is stable at 7 cents, reflecting a year-over-year decline of 22.2% [2] Earnings Performance and Factors - Grocery Outlet has a trailing four-quarter negative earnings surprise of 8.3% on average, with the last quarter's bottom line underperforming the Zacks Consensus Estimate by 11.8% [3] - Key factors supporting top-line growth include opportunistic purchasing, targeted marketing, and a disciplined store expansion strategy [3] - The expanded product assortment, featuring a mix of branded and private-label items, resonates with value-seeking consumers, enhancing customer engagement and shopping frequency [3] Strategic Collaborations and Technology - Collaborations with Instacart, DoorDash, and Uber Technologies aim to enhance accessibility and convenience through same-day delivery partnerships [4] - The mobile app has gained traction, allowing customers to access personalized deals and early promotions [4] Store Expansion and Operational Efficiency - The company's measured approach to store expansion and investments in supply-chain efficiency are expected to positively impact first-quarter performance [5] - Focusing growth on high-return markets and clustering locations aims to improve operational efficiency and capital productivity [5] Financial Challenges - Although Grocery Outlet has largely overcome the financial impacts of its system transition, lingering challenges may hinder margin expansion and operational scalability [6] - SG&A expenses are expected to rise by 12% in the first quarter, leading to a 110-basis point deleverage to 30.4% of net sales [6] Earnings Prediction - The Zacks Model predicts an earnings beat for Grocery Outlet, supported by a positive Earnings ESP and a Zacks Rank of 3 (Hold) [7][8]

NEW YORK, April 29, 2025 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Grocery Outlet Holding Corp. (NASDAQ:GO) on behalf of long-term stockholders following a class action complaint that was filed against Grocery Outlet on January 30, 2025 with a Class Period from August 9, 2023, to October 29, 2024. Our investigation concerns whether the board of directors of Grocery Outlet have breached their fiduciary dutie ...

Core Viewpoint - Grocery Outlet Holding Corp. (GO) is expected to report a year-over-year decline in earnings despite higher revenues for the quarter ended March 2025, with the consensus outlook being crucial for assessing the company's earnings picture [1][2]. Earnings Expectations - The consensus estimate for quarterly earnings is $0.07 per share, reflecting a year-over-year decrease of 22.2%, while revenues are anticipated to reach $1.13 billion, an increase of 8.7% from the previous year [3]. - The stock may experience upward movement if actual results exceed expectations, while a miss could lead to a decline [2]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly reassessed their initial estimates during this period [4]. - A positive Earnings ESP of +12.50% suggests that analysts have recently become more optimistic about the company's earnings prospects [10]. Historical Performance - In the last reported quarter, Grocery Outlet was expected to post earnings of $0.17 per share but delivered $0.15, resulting in a surprise of -11.76% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates two times [13]. Predictive Indicators - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. - The current Zacks Rank for Grocery Outlet is 3, indicating a likelihood of beating the consensus EPS estimate [11].

Core Points - Grocery Outlet Holding Corp. announced the winners of its "Free Groceries for Life" sweepstakes, with each grand prize valued at $240,000 [1][3] - The sweepstakes ran from January 8 to March 31, and 32 winners were selected, including two grand prize winners [3][4] - The company aims to provide customers with the best deals and shopping experience, as stated by CEO Jason Potter [2] Company Overview - Grocery Outlet is a high-growth, extreme value retailer based in Emeryville, California, with over 530 stores across various states [5] - The company focuses on selling quality, name-brand consumables and fresh products through independently operated stores [5]

Financial Results Announcement - Grocery Outlet Holding Corp. will release its financial results for Q1 fiscal 2025 after market close on May 6, 2025 [1] - A conference call to discuss the results will be held at 4:30 PM ET (1:30 PM PT) [1] Conference Call Details - Investors and analysts can join the call by dialing (877) 407-9208 approximately 10 minutes before it starts [2] - A live audio webcast of the conference call will be available online [2] - A taped replay of the conference call will be accessible within three hours after the call and will be available for approximately two weeks [3] Company Overview - Grocery Outlet is a high-growth, extreme value retailer based in Emeryville, California, specializing in quality, name-brand consumables and fresh products [4] - The company operates more than 530 stores across various states including California, Washington, Oregon, and others [4]

Sprouts Farmers Market Inc. (SFM) and Grocery Outlet Holding Corp. (GO) are both well-established names in the grocery retail space, offering a strong focus on value and quality. Sprouts Farmers specializes in fresh, natural and organic offerings, positioning itself as a destination for health-conscious shoppers. Grocery Outlet, on the other hand, attracts budget-focused customers by offering name-brand products at discounted rates, often through opportunistic purchasing.Despite their different strategies, ...