NASDAQ$GO
Grocery Outlet Holding Corp · Q1 2020 earnings
Q1 2020 earnings · · Investor relations
Briefing
Grocery Outlet's financial performance for Q1 2020 was announced, demonstrating substantial growth in net sales, comparable store sales, and net income.
Grocery Outlet reported a strong first quarter in fiscal year 2020, marked by a 25.4% increase in net sales, a 17.4% rise in comparable store sales, and a 235.0% surge in net income. The company opened eight net new stores, bringing the total to 355 stores across six states. While not providing formal 2020 earnings guidance due to COVID-19 uncertainties, Grocery Outlet remains confident in its ability to execute its long-term growth strategies.
- Net sales increased by 25.4% to $760.3 million compared to $606.3 million in the first quarter of fiscal 2019.
- Comparable store sales increased by 17.4% compared to a 4.2% increase in the same period last year.
- Net income increased by 235.0% to $12.6 million, or $0.13 per diluted share, compared to $3.8 million, or $0.06 per diluted share, in the first quarter of fiscal 2019.
- The Company opened eight net new stores ending the quarter with 355 stores in six states.
Headline financials
Revenue & EPS history
Grocery Outlet · Revenue · Quarterly
$760M
Forward guidance
Due to the uncertainty related to COVID-19, Grocery Outlet is not providing formal 2020 earnings guidance at this time but expects to open between 28 and 30 stores this year with no additional closures planned. Quarter-to-date comparable store sales growth is tracking in the mid-teens driven by an increase in average basket size partially offset by declines in store traffic due to shelter-in-place restrictions. The impact of the COVID-19 situation remains fluid and therefore it is difficult to predict the impact of potential changes to shelter-in-place restrictions.
Tailwinds
- Company expects to open between 28 and 30 stores this year with no additional closures planned.
- Company continues to build its real estate pipeline to support 10% annual unit growth in the future.
- Quarter-to-date comparable store sales growth is tracking in the mid-teens.
- Increase in average basket size
- Performance and liquidity position remain strong, allowing us to continue investing in pursuit of our long term growth strategies.
Headwinds
- Not providing formal 2020 earnings guidance at this time due to the uncertainty related to COVID-19
- Incremental operational expenses, primarily in the second quarter, related to COVID-19, including additional cleaning and safety measures.
- Corporate and distribution center personnel expense including premium pay, overtime and temporary labor, and costs for protective equipment and supplies at its stores and facilities.
- Declines in store traffic due to shelter-in-place restrictions.
- Impact of the COVID-19 situation remains fluid and therefore it is difficult to predict the impact of potential changes to shelter-in-place restrictions.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 19 quarterly earnings reports · overlaid with Q1 2020
-1.9%
Avg return
Earnings day
-0.2%
Avg return
5 days after
-2.6%
Avg return
30 days after
53%
17 / 32 earnings
Positive
+13.4%
Q3 2021
Best reaction
-30.2%
Q4 2024
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -2.5% | -4.7% | +20.4% | |
| Q4 2025 | -28.1% | -28.1% | -17.9% | |
| Q3 2025 | -8.1% | -18.2% | -20.0% | |
| Q1 2025 | -6.3% | -13.2% | -16.2% | |
| Q4 2024 | -30.2% | -28.0% | -15.8% | |
| Q3 2024 | +11.8% | +23.5% | +30.3% | |
| Q2 2024 | +7.4% | +7.2% | -7.0% | |
| Q1 2024 | -19.1% | -19.1% | -17.2% | |
| Q4 2023 | +0.6% | +1.5% | +10.7% | |
| Q3 2023 | -4.0% | -2.9% | +4.5% | |
| Q2 2023 | +4.2% | +3.4% | -8.9% | |
| Q1 2023 | +4.4% | +0.8% | -6.0% | |
| Q4 2022 | -4.4% | -0.2% | +2.1% | |
| Q3 2022 | -5.6% | -8.9% | -12.8% | |
| Q2 2022 | -7.2% | -10.7% | -16.7% | |
| Q1 2022 | +10.5% | +14.5% | +14.6% | |
| Q4 2021 | -2.1% | +5.4% | +17.9% | |
| Q3 2021 | +13.4% | +21.1% | +19.9% | |
| Q2 2021 | -12.4% | -15.4% | -20.9% | |
| Q1 2021 | -19.9% | -15.8% | -17.7% | |
| Q3 2020 | -2.4% | -6.8% | -8.6% | |
| Q2 2020 | -5.2% | -4.8% | -12.5% | |
| Q1 2019 | +0.6% | +2.3% | -9.6% | |
| Q1 2020 | +2.1% | +2.2% | -7.5% | |
| Q4 2018 | +6.7% | +1.8% | +5.1% | |
| Q4 2017 | +6.7% | +1.8% | +5.1% | |
| Q4 2019 | +6.3% | +7.4% | +7.7% | |
| Q3 2018 | +1.9% | +1.8% | -1.7% | |
| Q3 2019 | +4.8% | +1.4% | +2.7% | |
| Q2 2019 | +5.2% | +24.2% | -1.8% | |
| Q2 2018 | +5.2% | +24.2% | -1.8% | |
| Q1 2018 | +5.2% | +24.2% | -1.8% |
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