Grocery Outlet (GO) Q3 2025 Earnings
How Did GO Stock React to Q3 2025 Earnings?
S&P 500 over the same 30 days: +1.55%.
Did GO Beat Earnings? Q3 2025 Results
Yes. Grocery Outlet reported Q3 2025 earnings of $0.21 a share on Nov 4, 2025, beating the $0.19 consensus estimate by 11.5%. Revenue was $1.2B against a $1.2B estimate.
Grocery Outlet delivered a mixed third-quarter fiscal 2025 report, posting adjusted diluted EPS of $0.21 against a consensus estimate of $0.19, a beat of 11.46%, while revenue of $1.17 billion grew 5.4% year over year but fell just short of the $1.18 billion analysts had expected. The profitability story was more complicated beneath the surface, with gross margin contracting to 30.4% from 31.1% a year earlier as promotional activity and markdowns on seasonal inventory weighed heavily on results, helping cut GAAP net income to $11.61 million from $24.18 million in the prior-year period. Comparable store sales rose a modest 1.2%, with shoppers visiting more frequently but spending less per trip, a pattern that pressured the top line throughout the quarter. Looking ahead, management narrowed its full-year net sales guidance to $4.70 to $4.72 billion and trimmed its comparable store sales growth outlook to 0.6% to 0.9%, while pointing to a broad rollout of its store refresh program in Q4 as a catalyst to accelerate same-store sales momentum into 2026.
- Net sales growth of 5.4% driven by new store openings and 1.2% comparable store sales increase
- Comparable store sales driven by 1.8% increase in transactions, partially offset by 0.6% decrease in average transaction size
- Gross margin decline of 70 basis points year-over-year to 30.4% due to promotional activities and seasonal inventory markdowns
- SG&A increased 8.7% year-over-year driven by new store growth costs
- Adjusted EBITDA declined to $66.7 million from $72.3 million in prior year quarter
“In the third quarter, we made progress on our key initiatives while delivering strong bottom-line results. In addition, we launched our store refresh program at an initial group of pilot stores.”
Grocery Outlet CEO, on the earnings call
What Was Grocery Outlet's Outlook in Q3 2025?
Grocery Outlet revised its fiscal 2025 guidance (which includes a 53rd week): net new store openings updated to 37 (from 33-35); net sales narrowed to $4.70-$4.72 billion (from $4.7-$4.8 billion); comparable store sales growth reduced to 0.6%-0.9% (from 1.0%-2.0%); gross margin tightened to 30.3%-30.4% (from 30.0%-30.5%); adjusted EBITDA narrowed to $258-$262 million (from $260-$270 million); diluted adjusted EPS revised to $0.78-$0.80 (from $0.75-$0.80); capital expenditures (net of tenant improvement allowances) maintained at $210 million. Management expects to accelerate same-store sales growth in 2026 through the store refresh program and enhanced IO support.
GO YoY Financials
| Metric | Q3 2025 | Q3 2024 | Year over year |
|---|---|---|---|
| Revenue | $1.2B | $1.1B | +5.4% |
| Gross Profit | $355.1M | $344.9M | +3.0% |
| Operating Income | $22.8M | $40.3M | −43.4% |
| Net Income | $11.6M | $24.2M | −52.0% |
Figures from SEC filings and company reports. Not investment advice.