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Sep 30, 2023
Grocery Outlet Q3 2023 Earnings Report
Announced financial results for the third quarter of fiscal 2023.
Key Takeaways
Grocery Outlet reported a 9.3% increase in net sales to $1.00 billion and a 6.4% increase in comparable store sales. Net income increased by 55.1% to $27.1 million, with diluted EPS of $0.27. Adjusted EBITDA increased by 20.0% to $68.1 million.
Net sales increased by 9.3% to $1.00 billion.
Comparable store sales increased by 6.4%, driven by a 8.6% increase in the number of transactions partially offset by a 1.9% decrease in average transaction size.
Gross margin increased to 31.4%, 80 basis points over the third quarter of last year.
The Company opened eight new stores, ending the quarter with 455 stores in eight states.
Forward Guidance
The Company is updating key guidance figures for fiscal 2023.
Positive Outlook
- Net sales of ~$3.95 billion.
- Comparable store sales increase of 7.0% to 7.5%.
- Gross margin of ~31.2%.
- Capital expenditures (net of tenant improvement allowances) of ~$155 million.
- New store openings, net of 27.
Challenges Ahead
- Adjusted EBITDA of $248 million to $252 million
- Adjusted earnings per share — diluted of $1.04 to $1.06
- System implementation impacts to fourth quarter comparable store sales of approximately 300 basis points
- System implementation impacts to fourth quarter gross margin of approximately 150 basis points
Historical Earnings Impact
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Avg. Return Before/After Earnings
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