Earnings Releases·Nov 10, 2026, 4:03 PM ET

Grocery Outlet Holding Corp. — Third Quarter Fiscal 2026 Earnings Summary

Net sales rose 0.9% YoY to $1.18 billion for the quarter, while Q3 net income increased to $13.3 million ($0.13/share) from $11.6 million last year; however, the 39-week period reported a net loss of $161.4 million ($1.63/share) due to a $158.0 million non-cash goodwill impairment charge.
The company revised full-year fiscal 2026 guidance to reflect 30–31 net store openings (down from 30–33), raised diluted adjusted EPS guidance to $0.52–$0.55 (from $0.51–$0.55), and lowered adjusted EBITDA guidance to $225–$229 million (from $225–$235 million).
Gross margin contracted to 30.0% in Q3 from 30.4% last year, driven by produce demand declines from a Cyclospora outbreak, higher transportation costs, and promotions, partially offset by a favorable shift to opportunistic products.
The Optimization Plan resulted in 36 store closures over the 39 weeks, with total net restructuring charges estimated between $22 million and $29 million, and is expected to be substantially completed by Q4 fiscal 2027.