GlobeNewswire·May 13, 2026, 4:01 PM ET

Grocery Outlet Holding Corp. Announces First Quarter Fiscal 2026 Financial Results

Grocery Outlet Holding Corp. reported a net loss of $180.3 million, or $1.83 per diluted share, for the first quarter of fiscal 2026, compared to a net loss of $23.3 million, or $0.24 per diluted share, in the prior year.
Net sales increased 3.6% to $1.17 billion, driven by new store openings, while comparable store sales declined by 1.0% due to a 3.1% drop in average transaction size.
Gross margin decreased to 29.6% from 30.4% last year, a decline of 80 basis points, including a 50 basis point impact from inventory markdowns & write-offs related to restructuring activities.
The company recorded an operating loss of $178.0 million, which included a $158.0 million non-cash goodwill impairment charge & $18.2 million in restructuring charges.
Adjusted net income was $4.6 million, or $0.05 per diluted share, down from $13.0 million, or $0.13 per diluted share, in the first quarter of fiscal 2025.
Adjusted EBITDA totaled $43.1 million, representing 3.7% of net sales, compared to $51.9 million, or 4.6% of net sales, in the prior year.
The company closed 28 stores during the quarter, including 27 under its Optimization Plan, & opened 7 new stores, ending with 549 locations across 16 states.
The Optimization Plan involves the closure of 36 underperforming stores & lease terminations, with total estimated restructuring charges between $20 million & $27 million expected to be substantially completed by the first quarter of fiscal 2027.
Capital expenditures net of tenant improvement allowances were $53.9 million for the quarter, a decrease from $57.3 million in the prior year due to fewer new store openings.
Grocery Outlet reaffirmed its fiscal 2026 guidance, projecting net sales of $4.60 billion to $4.72 billion, adjusted EBITDA of $220 million to $235 million, & diluted adjusted earnings per share of $0.45 to $0.55.