August 9, 2024
Grocery Outlet Holding Corp. Announces Second Quarter Fiscal 2024 Financial Results
Grocery Outlet Holding Corp. 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 percent to $1.13 billion.
- Comparable store sales increased by 2.9 percent, driven by a 5.1 percent increase in the number of transactions, partially offset by a 2.1 percent 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 percent. 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 percent to $323.1 million or 28.6 percent 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 percent to $14.0 million or $0.14 per share.
- Adjusted EBITDA(1) decreased by 3.7 percent to $67.9 million or 6.0 percent of net sales.
- Adjusted net income(1) decreased by 21.4 percent 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.”
For more information, visit the company’s official press release here.