Business
Grocery Outlet Holding Corp. Announces Second Quarter Fiscal 2024 Financial Results
Q2 fiscal 2024 net sales increased 11.7%Q2 fiscal 2024 comparable store sales grew 2.9%, driven by a 5.1% increase in transactionsCompany updates key guidance
About this update from Grocery Outlet Holding Corp.
[{"type":"text","content":"Q2 fiscal 2024 net sales increased 11.7%Q2 fiscal 2024 comparable store sales grew 2.9%, driven by a 5.1% increase in transactionsCompany updates key guidance for fiscal 2024 EMERYVILLE, Calif., Aug. 06, 2024 (GLOBE NEWSWIRE) -- Grocery Outlet Holding Corp. (NASDAQ: GO) (\"Grocery Outlet\" or the \"Company\") today announced financial results for the second quarter of fiscal 2024 ended June 29, 2024. Highlights for Second Quarter Fiscal 2024 as compared to Second Quarter Fiscal 2023: Net sales increased by 11.7% to $1.13 billion.Comparable store sales increased by 2.9%, driven by a 5.1% increase in the number of transactions, partially offset by a 2.1% decrease in average transaction size.In addition to the previously announced 40 stores acquired as part of the United Grocery Outlet acquisition on April 1, 2024, the Company opened 11 new stores and closed one store, ending the quarter with 524 stores in 16 states.Gross margin decreased by 140 basis points to 30.9%. 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 100 basis points in the second quarter. The Company does not expect any further disruptions that would result in material negative impacts on its results of operations in the second half of fiscal 2024.Selling, general and administrative expenses increased by 11.4% to $323.1 million, or 28.6% of net sales. This included $3.8 million of commission support the Company elected to provide operators in connection with the Company's system upgrades.Net income decreased 42.8% to $14.0 million, or $0.14 per share.Adjusted EBITDA(1) decreased by 3.7% to $67.9 million, or 6.0% of net sales.Adjusted net income(1) decreased by 21.4% to $25.1 million, or $0.25 per adjusted diluted share(1). \"We are pleased with our second quarter performance with gross margins and earnings coming in better than our expectations,\" said RJ Sheedy, President and CEO of Grocery Outlet. \"We also continue to make good progress with our systems transition work and are happy to now have the material negative P&L impact behind us.\" __________________________________ (1)Adjusted EBITDA, adjusted net income and adjusted diluted earnings per share are non-GAAP financial measures, which excl...