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Mar 30, 2024
Grocery Outlet Q1 2024 Earnings Report
Grocery Outlet's Q1 2024 financial performance showed increased net sales and comparable store sales, but gross margin was impacted by technology platform implementation disruptions.
Key Takeaways
Grocery Outlet reported a 7.4% increase in net sales, reaching $1.04 billion, and a 3.9% rise in comparable store sales driven by a 7.0% increase in transactions. However, gross margin decreased by 180 basis points due to disruptions from new technology platforms. The company opened six new stores, bringing the total to 474 stores. Net loss was $1.0 million, or $(0.01) per share.
Net sales increased by 7.4% to $1.04 billion.
Comparable store sales increased by 3.9%, driven by a 7.0% increase in transactions.
Six new stores were opened, ending the quarter with 474 stores.
Gross margin decreased by 180 basis points to 29.3%.
Forward Guidance
The Company is updating key guidance figures for fiscal 2024. New store openings, net is expected to be 58 to 62. Net sales is expected to be $4.30 billion to $4.35 billion. Comparable store sales increase is expected to be 3.5% to 4.5%. Gross margin is expected to be ~30.5%. Adjusted EBITDA is expected to be $252 million to $260 million. Adjusted earnings per share — diluted is expected to be $0.89 to $0.95. Capital expenditures (net of tenant improvement allowances) is expected to be ~$175 million.
Positive Outlook
- New store openings, net is expected to be 58 to 62.
- Net sales is expected to be $4.30 billion to $4.35 billion.
- Comparable store sales increase is expected to be 3.5% to 4.5%.
- Gross margin is expected to be ~30.5%.
- Capital expenditures (net of tenant improvement allowances) is expected to be ~$175 million.
Challenges Ahead
- Adjusted EBITDA is expected to be $252 million to $260 million.
- Adjusted earnings per share — diluted is expected to be $0.89 to $0.95.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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