Grocery Outlet reports Q1 adjusted EPS 9c, consensus 18c

Reports Q1 revenue $1.04B, consensus $1.02B. Comparable store sales increased by 3.9%, driven by a 7.0% increase in the number of transactions, partially offset by a 2.9% decrease in average transaction size. The company opened six new stores, ending the quarter with 474 stores in nine states. “Our sales momentum remained strong during the first quarter as we continue to deliver unbeatable value with an exciting treasure hunt experience, driving continued growth in traffic and sales,” said RJ Sheedy, CEO of Grocery Outlet. “Despite progress with our systems transition and ending the operator commission support program, as planned, we are disappointed that additional systems conversion issues resulted in a higher than expected adverse profit impact. Our long term growth potential remains intact and we look forward to returning to more normalized business results as we near the end of our systems transition.”