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Dec 28, 2024
Grocery Outlet Q4 2024 Earnings Report
Grocery Outlet Holding Corp. announced its financial results for the fourth quarter and full fiscal year ended December 28, 2024, reporting an increase in net sales and adjusted EBITDA for the quarter.
Key Takeaways
Grocery Outlet Holding Corp. reported solid fourth quarter results with net sales increasing by 10.9% to $1.10 billion and adjusted EBITDA increasing by 12.5% to $57.2 million. However, net income decreased significantly to $2.3 million from $14.1 million in the prior year, primarily due to lower gross margin and higher selling, general and administrative expenses.
Net sales for Q4 2024 increased by 10.9% to $1.10 billion compared to Q4 2023.
Comparable store sales increased by 2.9% in Q4 2024.
Adjusted EBITDA increased by 12.5% to $57.2 million in Q4 2024.
Net income for Q4 2024 decreased to $2.3 million from $14.1 million in Q4 2023.
Forward Guidance
For fiscal year 2025, Grocery Outlet expects net sales between $4.7 billion and $4.8 billion, comparable store sales increase of 2.0% to 3.0%, and adjusted EBITDA between $260 million and $270 million. The company also anticipates opening 33 to 35 net new stores and projects adjusted diluted earnings per share between $0.70 and $0.75.
Positive Outlook
- Projected net sales growth to $4.7 billion - $4.8 billion for fiscal 2025.
- Anticipated comparable store sales increase of 2.0% - 3.0% for fiscal 2025.
- Expected increase in Adjusted EBITDA to $260 million - $270 million for fiscal 2025.
- Plans to open 33 to 35 net new stores in fiscal 2025.
- Projected adjusted diluted earnings per share of $0.70 - $0.75 for fiscal 2025.
Challenges Ahead
- Restructuring Plan costs are estimated to be between $52 million and $61 million, with $36 million to $45 million expected as cash expenditures.
- The company does not reconcile non-GAAP forward-looking guidance to GAAP measures due to variability and low visibility of certain items.
Historical Earnings Impact
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