Q3 2025 Grocery Outlet Holding Corp Earnings Call Transcript
Key Points
- Grocery Outlet Holding Corp (GO) reported a 5.4% increase in net sales to $1.17 billion, with comparable store sales up 1.2%.
- The company added 11 net new stores during the quarter, contributing to its growth strategy.
- The rollout of the store refresh concept has shown promising results, with pilot stores experiencing mid single-digit comp lifts.
- Grocery Outlet Holding Corp (GO) achieved a gross margin of 30.4%, consistent with its outlook, and delivered an adjusted EBITA of $67 million, at the top of its outlook range.
- The company is focusing on improving inventory visibility and availability, enhancing the in-store experience, and securing top talent to drive future growth.
- Comparable store sales growth of 1.2% came in below the company's outlook range of 1.5% to 2%.
- Promotional activities and marketing mix adjustments in late Q3 negatively impacted sales, leading to a decline in comps during the final weeks of the quarter.
- The company expects same store sales growth to be between flat and up 1% for the fourth quarter, indicating a slow start to Q4.
- Net income decreased to $11.6 million or $0.12 per share, compared to $24.2 million or $0.24 per share in the previous year.
- The company faces potential risks from the federal government shutdown and potential disruption to SNAP benefits, which could impact sales.
Greetings and welcome to the grocery outlet's 3rd quarter 2025 earning results conference call. At this time, all participants are on a listen-only mode.
A question-and-answer session will follow the formal presentation.
As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Ian Ferry, Vice President of Treasury and Investor Relations.
Thank you. You may begin.
Good afternoon and welcome to Grocery Alex's call to discuss financial results for the third quarter ended September 27, 2025. Speaking for 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 playback on the investor relations section of the company's
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