Companies /Consumer Defensive

Grocery Outlet Holding Corp

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

Q1 2026 Earnings

Reported May 13, 2026, 4:03pm ET · SEC source
$0.05
Beat +120.26%
EPS · est. $0.02
$1.2B
Beat +1.38%
Revenue · est. $1.2B
+28.5%
Beating market
GO vs S&P since report
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−7%0+7%+14%May 13May 14report 4:03pm ETearnings+0.7%−5.5%
−7%0+7%+14%May 13May 14earnings+0.7%−5.5%
GO −5.5%S&P 500 +0.7%
−6%0+6%+12%May 13May 14report 4:03pm ETearnings+0.8%−5.5%
−6%0+6%+12%May 13May 14earnings+0.8%−5.5%
GO −5.5%NASDAQ +0.8%
−21%−14%−7%0May 12May 21report 4:03pm ETearnings−0.0%−11.9%
−21%−14%−7%0May 12May 21earnings−0.0%−11.9%
GO −11.9%S&P 500 −0.0%
−21%−14%−7%0May 12May 21report 4:03pm ETearnings−0.2%−11.9%
−21%−14%−7%0May 12May 21earnings−0.2%−11.9%
GO −11.9%NASDAQ −0.2%
−0.90%
Day of report
−3.52%
Next session
+4.43%
One week
+28.81%
30 days

S&P 500 over the same 30 days: +0.29%.

Did GO Beat Earnings? Q1 2026 Results

Grocery Outlet Holding Corp. delivered a first-quarter fiscal 2026 earnings beat that masked a deeply turbulent period beneath the headline numbers, as the extreme-value grocer posted adjusted EPS of $0.05, clearing the $0.02 consensus estimate by 120.26%, while revenue of $1.17 billion edged past expectations by 1.38% and grew 3.6% year over year. The cleaner adjusted figures, however, stood in stark contrast to a GAAP net loss of $180.32 million, or $(1.83) per diluted share, driven primarily by a $158.00 million non-cash goodwill impairment charge triggered by a decline in market capitalization, compounded by $18.20 million in restructuring costs tied to the closure of 36 underperforming stores under a newly adopted Optimization Plan. Comparable store sales slipped 1.0%, and adjusted EBITDA compressed to $43.10 million from $51.90 million a year ago. The company, which also faces pending securities class action litigation from investors, reaffirmed full-year guidance calling for net sales of $4.60 billion to $4.72 billion and diluted adjusted EPS of $0.45 to $0.55.

Key Takeaways
  • Net sales increased 3.6% driven by new store sales, partially offset by 1.0% decline in comparable store sales
  • Comparable store sales decline driven by 3.1% decrease in average transaction size, partially offset by 2.1% increase in number of transactions
  • Gross margin declined 80 basis points to 29.6%, including 50 basis point impact from inventory markdowns and write-offs from Optimization Plan store closures
  • SG&A increased 40 basis points as percentage of net sales due to higher professional fees, commissions and growth-related costs
  • $158 million non-cash goodwill impairment charge resulting from decline in market capitalization
  • $18.2 million in restructuring charges related to Optimization Plan

“We delivered first quarter results consistent with our guidance, as our work to strengthen the business drove sequential improvements in comp-store sales throughout the quarter.”

Grocery Outlet CEO, on the earnings call

Forward Guidance & Outlook

The company reaffirmed its full-year fiscal 2026 guidance: 30-33 net new store openings (excluding Optimization Plan closures), net sales of $4.60-$4.72 billion, comparable store sales change of -2.0% to 0.0%, gross margin of 29.7%-30.0%, adjusted EBITDA of $220-$235 million, diluted adjusted EPS of $0.45-$0.55, and capital expenditures (net of tenant improvement allowances) of $170 million. Restructuring charges related to the Optimization Plan are estimated at $20-$27 million in total across fiscal 2026 and 2027.

GO YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$400.0M$800.0M$1.2B$1.1B$1.2BRevenue$342.5M$345.2MGross Profit
$0$400.0M$800.0M$1.2BRevenueGross Profit

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