Overview

* Grocery Outlet ( GO ) fiscal Q3 sales rose 5.4% to $1.17 bln, missing analyst expectations

* Adjusted EPS for fiscal Q3 beat consensus, reaching $0.21

* Company's adjusted net income for fiscal Q3 exceeded estimates, totaling $20.7 mln

Outlook

* Grocery Outlet ( GO ) revises fiscal 2025 net sales to $4.70 bln-$4.72 bln

* Company lowers fiscal 2025 comparable store sales growth to 0.6%-0.9%

* Grocery Outlet ( GO ) expects fiscal 2025 adjusted EBITDA of $258 mln-$262 mln

Result Drivers

* STORE REFRESH PROGRAM - Pilot stores in the refresh program saw impressive results, leading to plans for broader rollout in Q4, per CEO Jason Potter

* NEW STORE OPENINGS - Net sales increase driven by new store sales and a 1.2% rise in comparable store sales

* GROSS MARGIN DECLINE - Gross margin decreased due to promotional activities and markdowns related to seasonal inventory

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss $1.17 $1.18

bln bln (12

Analysts

)

Q3 Beat $0.21 $0.19

Adjusted (13

EPS Analysts

)

Q3 EPS $0.12

Q3 Beat $20.7 $18.90

Adjusted mln mln (8

Net Analysts

Income )

Q3 Miss $66.7 $67.40

Adjusted mln mln (11

EBITDA Analysts

)

Q3 Gross 30.40%

Margin

Q3 Gross $355.13

Profit mln

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the food retail & distribution peer group is "buy."

* Wall Street's median 12-month price target for Grocery Outlet Holding Corp ( GO ) is $18.00, about 20.9% above its November 3 closing price of $14.24

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)