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Grocery Outlet

Grocery Outlet (GO) Q2 2026 Earnings

Reported Aug 12, 2026 at 4:03 PM ET · SEC Source

Q2 26 EPS Adjusted

$0.20

BEAT +60.90%

Est. $0.12

Includes $5.4 million in net restructuring charges related to the Optimization Plan, $0.6 million in asset impairment, $1.3 million in amortization of purchase accounting assets and deferred financing costs, and $7.5 million in other non-recurring items

Q2 26 Revenue

$1.19B

BEAT +2.18%

Est. $1.17B

vs S&P Since Q2 26

+16.2%

BEATING MARKET

GO +15.1% vs S&P -1.2%

Market Reaction

Did GO Beat Earnings? Q2 2026 Results

Grocery Outlet Holding Corp. Delivered a stronger-than-expected second quarter of fiscal 2026, beating on both the top and bottom lines even as its business transformation continued to weigh on results. The discount grocer posted adjusted EPS of $0.2… Read more Grocery Outlet Holding Corp. Delivered a stronger-than-expected second quarter of fiscal 2026, beating on both the top and bottom lines even as its business transformation continued to weigh on results. The discount grocer posted adjusted EPS of $0.20, well ahead of the $0.12 consensus estimate by 60.90%, while net sales rose 1.1% year-over-year to $1.19 billion, clearing the $1.17 billion analyst estimate by 2.18%. The outperformance came despite meaningful headwinds: gross margin contracted 40 basis points to 30.2%, pressured by promotional activity and inventory markdowns tied to closures under the Optimization Plan, which has now shuttered all 36 targeted underperforming stores. A federal securities lawsuit alleging the company misrepresented its growth prospects through aggressive expansion adds a layer of legal uncertainty to the recovery story. Still, management responded with upward guidance revisions, raising its fiscal 2026 adjusted EBITDA outlook to $225 million to $235 million and diluted adjusted EPS to $0.51 to $0.55, signaling confidence that the steepest comp-store pressures may be easing.

Key Takeaways

  • • Net sales growth of 1.1% driven by new store openings
  • • Comparable store sales declined 0.3%, improving from first quarter trends
  • • Transaction count increased 1.8% while average transaction size decreased 2.1%
  • • Gross margin declined 40 basis points to 30.2% due to promotional activity and inventory markdowns from Optimization Plan store closures
  • • Improvements in inventory management partially offset gross margin pressure
  • • Capital expenditures decreased significantly due to fewer new store openings and absence of prior-year warehouse investments

GO Forward Guidance & Outlook

The company revised fiscal 2026 guidance upward on key metrics. Net sales are now expected at $4.70 to $4.72 billion (previously $4.60 to $4.72 billion). Comparable store sales outlook improved to -0.5% to 0.0% (from -2.0% to 0.0%). Gross margin narrowed to 29.8%-30.0% (from 29.7%-30.0%). Adjusted EBITDA raised to $225 million to $235 million (from $220 million to $235 million). Diluted adjusted EPS raised to $0.51 to $0.55 (from $0.45 to $0.55). New store openings remain at 30 to 33 (net of Optimization Plan closures). Capital expenditures (net of tenant improvement allowances) unchanged at $170 million. The Optimization Plan is expected to be substantially completed by Q1 fiscal 2027 with estimated net total restructuring charges of $15 million to $24 million across fiscal 2026 and 2027.

24/7 Wall St

GO YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

“We delivered second-quarter results ahead of our outlook, as efforts to strengthen our opportunistic offering and value perception gained traction.”

— Jason Potter, Q2 2026 Earnings Press Release

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