Grocery Outlet Holding ( (GO) ) has released its Q4 earnings. Here is a breakdown of the information Grocery Outlet Holding presented to its investors.
Grocery Outlet Holding Corp. is a high-growth, extreme value retailer specializing in quality, name-brand consumables and fresh products, operating through a network of independently operated stores across 16 states. In its latest earnings report, Grocery Outlet announced a 10.9% increase in net sales for the fourth quarter of fiscal 2024, reaching $1.10 billion, alongside a 2.9% rise in comparable store sales. However, the company faced a decline in net income to $2.3 million, attributed to lower gross margins and increased SG&A expenses.
Key financial metrics for fiscal 2024 showed a 10.1% rise in net sales to $4.37 billion, with comparable store sales up by 2.7%. Despite these gains, net income fell to $39.5 million, impacted by higher inventory shrinkage and increased SG&A expenses. The company opened 67 new stores, including acquisitions, and initiated a restructuring plan aimed at optimizing store growth and reducing costs.
Adjusted EBITDA for the fourth quarter rose by 12.5% to $57.2 million, while for the full fiscal year, it decreased by 6.3% to $236.8 million. The company also announced a leadership change, welcoming Jason Potter as the new President and CEO, who brings over 30 years of industry experience.
Looking ahead, Grocery Outlet projects fiscal 2025 net sales between $4.7 billion and $4.8 billion, with a comparable store sales increase of 2.0% to 3.0%. The company remains focused on strategic initiatives to drive disciplined, sustainable growth and improve capital returns, under the new leadership of Jason Potter.