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Grocery Outlet Holding Corp. Announces Second Quarter Fiscal 2025 Financial Results
Grocery OutletGrocery Outlet(US:GO) GlobeNewswire News Roomยท2025-08-05 20:01

Core Viewpoint - Grocery Outlet Holding Corp. reported its financial results for the second quarter of fiscal 2025, highlighting growth in net sales and strategic initiatives aimed at improving profitability and operational efficiency [1][5]. Financial Performance Summary - Net sales increased by 4.5% to $1.18 billion in Q2 2025, driven by new store sales and a 1.1% rise in comparable store sales [6][12]. - Gross profit rose by 3.3% to $360.7 million, with a gross margin of 30.6%, down from 30.9% the previous year [7][11]. - Selling, general and administrative (SG&A) expenses increased by 4.2% to $336.8 million, representing 28.5% of net sales [9][11]. - Operating income was $12.8 million, including $11.2 million in restructuring charges [10][11]. - Net income for the quarter was $5.0 million, or $0.05 per diluted share, compared to $14.0 million, or $0.14 per diluted share in the prior year [11][12]. - Adjusted net income decreased by 9.3% to $22.8 million, or $0.23 diluted adjusted earnings per share [11][12]. - Adjusted EBITDA was $67.7 million, representing 5.7% of net sales [11][12]. Year-to-Date Financial Summary - For the 26 weeks ended June 28, 2025, net sales increased by 6.5% to $2.31 billion, with a 0.7% rise in comparable store sales [12][15]. - Gross profit for the first half increased by 7.6% to $703.1 million, with a gross margin of 30.5% [13][15]. - SG&A expenses rose by 6.6% to $667.8 million, accounting for 29.0% of net sales [14][15]. - The company reported an operating loss of $9.7 million for the first half, which included $45.0 million in restructuring charges [15]. - Net loss for the first half was $18.4 million, or $(0.19) per diluted share, compared to net income of $13.0 million, or $0.13 per diluted share in the previous year [15]. Restructuring Plan - The company initiated a restructuring plan aimed at improving long-term profitability and cash flow, which includes lease terminations and reductions in headcount [17][18]. - As of June 28, 2025, total costs under the restructuring plan are estimated at approximately $63 million, with about $39 million expected to be cash expenditures [18]. Outlook - The company maintained its guidance for fiscal 2025, with net sales projected between $4.7 billion and $4.8 billion and diluted adjusted earnings per share revised to $0.75 to $0.80 [19].