Grocery Outlet Sees Optimistic Q2 With Comps Up
Grocery Outlet's Q2 financial results were strong overall, with net sales increasing by 12.2 percent to $645.3 million. Comparable-store sales increased by 5.8 percent, compared with a 2.7 percent increase the year prior. The extreme-value retailer opened eight new stores and closed one during the quarter.
Q2 ended June 29, just days after Grocery Outlet went public at $22 per share. The company IPO on June 24, with total net proceeds of $400.5 million, went to repay many of its debts. On July 23, the company said it had a remaining $475.2 million first lien term loan.
“We are pleased with our second-quarter financial performance, which reflects consistent comparable-sales growth, strong new store performance and gross margin expansion," noted Grocery Outlet CEO Erick Lindberg. “We continue to identify ways to further support our network of independent operators, broaden our reach with existing and new suppliers, and more effectively engage with our customers. We remain focused on driving sales growth by delivering incredible savings on name-brand products and creating a WOW! experience for our customers. At the same time, we look to continue expanding our store base and reinvesting in our people, systems and infrastructure to support our long-term growth objectives.”
Other bullet points from the Q2 financial results included:
- Net loss of $10.6 million, or 15 cents per diluted share, compared with net income of $7.3 million, or 11 cents per diluted share in Q2 2018
- An adjusted EBITDA increase of 15 percent to $45 million, compared with $39.1 million in the year-ago period
- An adjusted net income increase of 12.1 percent to $14.5 million, or 20 cents per diluted share, compared with $12.9 million, or19 cents per diluted share last year
For both Q1 and Q2 2019, net sales increased by 11.2 percent and comps rose by 5 percent compared with the first half of 2018.