Q1 26 EPS
$0.05
BEAT +120.26%
Est. $0.02
Q1 26 Revenue
$1.17B
BEAT +1.38%
Est. $1.15B
vs S&P Since Q1 26
+23.8%
BEATING MARKET
GO +24.8% vs S&P +0.9%
Market Reaction
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 12… Read more 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
GO 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, source: SEC Filings
“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.”
— Jason Potter, Q1 2026 Earnings Press Release
GO Earnings Trends
GO vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
GO EPS Trend
Earnings per share: estimate vs actual
GO Revenue Trend
Quarterly revenue: estimate vs actual
GO Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $0.02 | $0.05 | +120.26% | $1.17B | +1.38% |
| Q4 25 MISS FY | $0.21 | $0.19 | -8.92% | $1.22B | -1.07% |
| FY Full Year | $0.78 | $0.76 | -2.93% | $4.69B | -0.17% |
| Q3 25 BEAT | $0.19 | $0.21 | +11.46% | $1.17B | -0.94% |
| Q2 25 BEAT | $0.17 | $0.23 | +32.87% | $1.18B | -0.66% |
| Q1 25 BEAT | $0.07 | $0.13 | +82.84% | $1.13B | +0.11% |