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

GO
  • Grocery Outlet Holding Corp. reported Q3 fiscal 2026 net sales of $1.18 billion, a 0.9% increase year-over-year.
  • Comparable store sales increased 0.5% in the third quarter, driven by a 2.4% rise in transaction count.
  • Gross margin for the quarter was 30.0%, down 40 basis points from the prior year due to promotions, higher transportation costs, & a Cyclospora outbreak affecting produce demand.
  • Operating income for the quarter was $24.0 million, which included $3.6 million in net restructuring credits related to the Optimization Plan.
  • Net income for the quarter was $13.3 million ($0.13 per diluted share), compared to $11.6 million ($0.12 per diluted share) last year.
  • Adjusted net income was $15.6 million ($0.16 per diluted adjusted share), down from $20.7 million ($0.21 per diluted adjusted share) in the prior year.
  • Adjusted EBITDA for the quarter was $59.4 million, representing 5.0% of net sales.
  • For the 39 weeks ended October 3, 2026, net sales increased 1.8% to $3.54 billion.
  • Comparable store sales declined 0.2% for the 39-week period, driven by a 2.3% decrease in average transaction size.
  • The 39-week period included a $158.0 million non-cash goodwill impairment charge & a $20.1 million net restructuring charge, resulting in an operating loss of $138.2 million.
  • Net loss for the 39 weeks was $161.4 million ($1.63 per diluted share), compared to a net loss of $6.8 million last year.
  • Adjusted net income for the 39 weeks was $40.5 million ($0.41 per diluted adjusted share), down from $56.5 million ($0.57 per diluted adjusted share) last year.
  • Adjusted EBITDA for the 39 weeks was $168.2 million, representing 4.8% of net sales.
  • The company opened 14 new stores in the third quarter & 31 new stores in the first three quarters, while closing 40 stores total under the Optimization Plan.
  • Capital expenditures for the third quarter were $25.7 million net of tenant improvement allowances, a decrease from $39.4 million last year.
  • The company revised its fiscal 2026 outlook to project net sales of $4.70 to $4.72 billion & adjusted EBITDA of $225 million to $229 million.
  • The Optimization Plan, aimed at strengthening profitability, is expected to be substantially completed by the fourth quarter of fiscal 2027.
  • A conference call to discuss results is scheduled for November 10, 2026, at 4:30 p.m. Eastern Time.
Company
Grocery Outlet, Inc.
Keywords
Nasdaq:GO, Grocery Outlet, Inc., stquotepage