Grocery Outlet(GO) - 2025 Q1 - Quarterly Results

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].