Business
Grocery Outlet Holding Corp. Announces Third Quarter Fiscal 2023 Financial Results
Net sales increased 9.3%Comparable store sales increased 6.4%GAAP net income increased 55.1% with diluted EPS of $0.27Adjusted EBITDA(1) increased 20.0% to
About this update from Grocery Outlet Holding Corp.
[{"type":"text","content":"Net sales increased 9.3%Comparable store sales increased 6.4%GAAP net income increased 55.1% with diluted EPS of $0.27Adjusted EBITDA(1) increased 20.0% to $68.1 millionCompany updates key guidance for fiscal 2023 EMERYVILLE, Calif., Nov. 07, 2023 (GLOBE NEWSWIRE) -- Grocery Outlet Holding Corp. (NASDAQ: GO) (\"Grocery Outlet\" or the \"Company\") today announced financial results for the third quarter of fiscal 2023 ended September 30, 2023. Highlights for Third Quarter Fiscal 2023 as compared to Third Quarter Fiscal 2022: 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.In late August, the Company implemented new technology platforms and, as a result, experienced disruptions which are estimated to have negatively impacted comparable store sales by approximately 150 basis points and gross margin by 50 basis points in the third quarter.The Company opened eight new stores, ending the quarter with 455 stores in eight states.Net income increased 55.1% to $27.1 million, or $0.27 per diluted share.Adjusted EBITDA(1) increased by 20.0% to $68.1 million, or 6.8% of net sales.Adjusted net income(1) increased by 23.4% to $31.0 million, or $0.31 per adjusted diluted share(1). \"We are pleased with our third quarter performance and the underlying trends in our business,\" said RJ Sheedy, CEO of Grocery Outlet. \"During the third quarter, we implemented new systems to improve capabilities and drive efficiencies as we scale for future growth. Despite operational challenges during the transition, we delivered strong results including same store sales growth, gross margin expansion, and bottom-line leverage. Our value proposition continues to resonate with consumers, and we are gaining market share.\" Mr. Sheedy continued, \"We are extremely proud to have recently published our first annual ESG report. This report showcases the positive impact that we have on our communities, our people, and our planet. Our mission of Touching Lives for the Better has always been at the heart of our business, and fulfilling this purpose has resulted in positive environmental and social impact throughout our 77-year histor...