Business
Grocery Outlet Holding Corp. Announces First Quarter Fiscal 2024 Financial Results
Q1 fiscal 2024 net sales increased 7.4%Q1 fiscal 2024 comparable store sales grew 3.9%, driven by a 7.0% increase in transactionsCompany updates key guidance
About this update from Grocery Outlet Holding Corp.
[{"type":"text","content":"Q1 fiscal 2024 net sales increased 7.4%Q1 fiscal 2024 comparable store sales grew 3.9%, driven by a 7.0% increase in transactionsCompany updates key guidance for fiscal 2024 EMERYVILLE, Calif., May 07, 2024 (GLOBE NEWSWIRE) -- Grocery Outlet Holding Corp. (NASDAQ: GO) (\"Grocery Outlet\" or the \"Company\") today announced financial results for the first quarter of fiscal 2024 ended March 30, 2024. Highlights for First Quarter Fiscal 2024 as compared to First Quarter Fiscal 2023: Net sales increased by 7.4% to $1.04 billion.Comparable store sales increased by 3.9%, driven by a 7.0% increase in the number of transactions, partially offset by a 2.9% decrease in average transaction size.The Company opened six new stores, ending the quarter with 474 stores in nine states.Gross margin decreased by 180 basis points to 29.3%. As previously disclosed, the Company experienced disruptions as a result of the implementation of new technology platforms in late August 2023. Such disruptions are estimated to have negatively impacted gross margin by 210 basis points in the first quarter.Selling, general and administrative expenses increased by 13.3% to $303.4 million, or 29.3% of net sales. This includes $12.4 million of commission support we elected to provide our operators in connection with our system upgrades.Net loss was $1.0 million, or $(0.01) per share.Adjusted EBITDA(1) decreased by 37.5% to $39.4 million, or 3.8% of net sales.Adjusted net income(1) decreased by 67.4% to $8.8 million, or $0.09 per adjusted diluted share(1). \"Our sales momentum remained strong during the first quarter as we continue to deliver unbeatable value with an exciting treasure hunt experience, driving continued growth in traffic and sales,\" said RJ Sheedy, President and CEO of Grocery Outlet. \"Despite progress with our systems transition and ending the operator commission support program, as planned, we are disappointed that additional systems conversion issues resulted in a higher than expected adverse profit impact. Our long term growth potential remains intact and we look forward to returning to more normalized business results as we near the end of our systems transition.\" __________________________________ (1) Adjusted EBITDA, adjusted net income and adjusted diluted earnings per share are non-GAAP financial measures, which exclude the impact of certai...