Companies /Consumer Defensive

Grocery Outlet Holding Corp

NASDAQ: GO Grocery Stores
$12.38
▲ $0.08 (+0.65%) today
Markets closed · 6:26pm ET

Q1 2025 Earnings

Reported May 6, 2025, 4:05pm ET · SEC source
$0.13
Beat +82.84%
EPS · est. $0.07
$1.1B
Beat +0.11%
Revenue · est. $1.1B
−18.9%
Trailing market
GO vs S&P since report
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−8%−4%0May 6May 7report 4:05pm ETearnings+0.4%−6.8%
−8%−4%0May 6May 7earnings+0.4%−6.8%
GO −6.8%S&P 500 +0.4%
−8%−4%0May 6May 7report 4:05pm ETearnings+0.5%−6.8%
−8%−4%0May 6May 7earnings+0.5%−6.8%
GO −6.8%NASDAQ +0.5%
−14%−7%0+7%May 5May 14report 4:05pm ETearnings+5.3%−17.9%
−14%−7%0+7%May 5May 14earnings+5.3%−17.9%
GO −17.9%S&P 500 +5.3%
−16%−8%0+8%May 5May 14report 4:05pm ETearnings+7.9%−17.9%
−16%−8%0+8%May 5May 14earnings+7.9%−17.9%
GO −17.9%NASDAQ +7.9%
−6.12%
Day of report
−2.28%
Next session
−12.07%
One week
−12.00%
30 days

S&P 500 over the same 30 days: +6.87%.

Did GO Beat Earnings? Q1 2025 Results

Grocery Outlet delivered a standout adjusted earnings beat in Q1 fiscal 2025, with new CEO Jason Potter, who has outlined a strategic reset focused on execution and opportunistic buying, posting adjusted diluted EPS of $0.13 against a consensus estimate of $0.07, an 82.84% beat that signaled underlying momentum even as heavy restructuring charges clouded the headline picture. Net sales climbed 8.6% year-over-year to $1.13 billion, edging past the $1.12 billion consensus, fueled by new store openings and gross margin expansion of 110 basis points to 30.4%, the latter reflecting a recovery in inventory management capabilities that had been disrupted by a prior-year systems conversion. On a GAAP basis, $33.88 million in restructuring charges tied to lease terminations and warehouse project cancellations produced a net loss of $23.32 million. Looking ahead, Grocery Outlet maintained its fiscal 2025 net sales guidance of $4.70 billion to $4.80 billion and adjusted EPS range of $0.70 to $0.75, while trimming comparable store sales growth expectations to 1.0%-2.0% from a prior 2.0%-3.0%.

Key Takeaways
  • 8.5% net sales growth driven by new store openings and United Grocery Outlet acquisition
  • 0.3% comparable store sales increase driven by 2.3% transaction growth
  • Gross margin expansion of 110 basis points to 30.4% from improved inventory management
  • Adjusted EBITDA increased 31.7% to $51.9 million
  • Operating cash flow improved significantly to $58.9 million from $7.8 million year-over-year driven by working capital improvements

“We delivered solid first quarter results, with comp-store sales and gross margins slightly ahead of our outlook, driven by traffic growth and tighter inventory management. We are encouraged by the improvement in our margins and the progress we have made on our real-time order guide.”

Grocery Outlet CEO, on the earnings call

Forward Guidance & Outlook

The company maintained most key fiscal 2025 guidance figures but lowered comparable store sales growth to 1.0%-2.0% (from 2.0%-3.0%). Maintained guidance includes: 33-35 net new store openings, net sales of $4.7 billion to $4.8 billion, gross margin of 30.0%-30.5%, adjusted EBITDA of $260 million to $270 million, diluted adjusted EPS of $0.70 to $0.75, and capital expenditures (net of tenant improvement allowances) of $210 million. Fiscal 2025 includes a 53rd week.

GO YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$400.0M$800.0M$1.2B$1.0B$1.1BRevenue$303.9M$342.4MGross Profit
$0$400.0M$800.0M$1.2BRevenueGross Profit

Figures from SEC filings and company reports. Not investment advice.