Q1 2025 Grocery Outlet Holding Corp Earnings Call Transcript
Key Points
- Grocery Outlet Holding Corp (GO) reported an 8.5% increase in net sales to $1.13 billion, driven by new store openings and a 30 basis point increase in comparable store sales.
- The company exceeded its gross margin outlook, achieving a 110 basis point increase to 30.4%, primarily due to improved inventory management and reduced shrinkage.
- Grocery Outlet Holding Corp (GO) opened 10 net new stores in the first quarter, positioning the company to meet its annual target of 33 to 35 new stores.
- The company successfully rolled out the initial phase of its real-time ordering guide, improving inventory visibility and execution, with plans for full rollout by the end of the second quarter.
- Adjusted EBITDA increased by 31.7% to $51.9 million, and adjusted EPS exceeded the top of the outlook range, reflecting strong financial performance.
- Despite the positive sales growth, Grocery Outlet Holding Corp (GO) experienced a decrease in average transaction size by 2%, impacting overall comparable store sales.
- The company reported a net loss of $23.3 million for the quarter, compared to a net loss of $1 million in the same period last year.
- Grocery Outlet Holding Corp (GO) adjusted its comp store sales outlook for the year, citing pressure on the basket size and broader macroeconomic uncertainties.
- The company incurred $33.9 million in restructuring charges, including lease termination costs and impairment of long-lived assets.
- April sales were softer than expected, with uncertainty in consumer behavior and macroeconomic conditions affecting performance.
Greetings, and welcome to the Grocery Outlet first-quarter 2025 earnings results conference call. (Operator Instructions) As a reminder, this conference is being recorded. It's now my pleasure to introduce your host, Christine Chen, Vice President of Investor Relations. Thank you. You may begin.
Good afternoon, and welcome to Grocery Outlet's call to discuss financial results for the first quarter ended March 28, 2025. Speaking from management on today's call will be Jason Potter, President and Chief Executive Officer; and Chris Miller, Chief Financial Officer. Following prepared remarks from Jason and Chris, we will open the call for questions. Please note that this conference call is being webcast live, and a recording will be available via telephone playback on the Investor Relations section of the company's website.
Participants on this call may make looking statements within the meaning of the federal securities laws. All statements that address future operating, financial or
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