Q1 2026 Grocery Outlet Holding Corp Earnings Call Transcript
Key Points
- Grocery Outlet Holding Corp (GO) reported Q1 revenue of $1.17 billion, up 3.6%, with traffic increasing by approximately 2%.
- The company achieved an adjusted EBITDA of $43.1 million, which was at the top end of their range.
- Grocery Outlet Holding Corp (GO) has increased its mix of branded opportunistic products by nearly 2 percentage points, enhancing customer value perception.
- The store refresh program has been positively received, with 58 stores completed, improving layout, signage, and merchandising.
- The company has made progress in supporting independent operators with better analytical tools and insights, enhancing store-level performance.
- Comparable store sales declined by 1% in Q1, slightly ahead of the expected decline but still a negative trend.
- Gross margin decreased by 80 basis points year over year, impacted by promotional investments and store closures.
- The company incurred restructuring charges of $18.2 million and a noncash goodwill impairment charge of $158 million.
- Grocery Outlet Holding Corp (GO) has reduced its target for store refreshes to 100 this year, indicating a slower pace than initially planned.
- The company is facing ongoing pressure on basket size, with units per transaction still under pressure despite traffic improvements.
Greetings, and welcome to the Grocery Outlet's first-quarter 2026 earnings results conference call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Ian Ferry, Senior Vice President of Strategic Finance and 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 April 4, 2026. 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 website. Participants on this call may make forward-looking statements with the meaning of the federal securities laws.
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