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Jun 27, 2020
Grocery Outlet Q2 2020 Earnings Report
Announced second quarter fiscal 2020 financial results, with net sales increasing by 24.5% and comparable store sales increasing by 16.7%.
Key Takeaways
Grocery Outlet reported a strong second quarter in fiscal 2020, marked by a 24.5% increase in net sales, reaching $803.4 million, and a 16.7% increase in comparable store sales. Net income increased significantly by $40.0 million to $29.3 million. The company opened 7 new stores, expanding its network to 362 stores across six states.
Net sales increased by 24.5% to $803.4 million compared to the second quarter of fiscal 2019.
Comparable store sales increased by 16.7% compared to a 5.8% increase in the same period last year.
The company opened 7 new stores, ending the quarter with 362 stores in six states.
Net income increased $40.0 million to $29.3 million, or $0.30 per diluted share.
Forward Guidance
Grocery Outlet anticipates opening between 30 and 32 stores this year and expects comparable store sales growth to moderate as the economy reopens. Quarter-to-date comparable store sales growth is tracking at approximately 10%. The company anticipates a normalized tax rate of 28% and a weighted average diluted share count of approximately 100 million shares for fiscal 2020.
Positive Outlook
- Expects to open between 30 and 32 stores this year.
- Continues to build its real estate pipeline to support 10% annual unit growth.
- Quarter-to-date comparable store sales growth is tracking at approximately 10%.
- Anticipates a normalized tax rate of 28%.
- Weighted average diluted share count is expected to be approximately 100 million shares for fiscal 2020.
Challenges Ahead
- Not providing formal 2020 earnings guidance at this time due to the uncertainty related to COVID-19.
- Comparable store sales growth will continue to moderate as the economy reopens.
- Quarter-to-date comparable store sales growth is partially offset by declines in store traffic.
Historical Earnings Impact
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