NASDAQ$GO

Grocery Outlet Holding Corp · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Grocery Outlet's Q2 2022 performance was strong, marked by increased net sales, comparable store sales, and adjusted EBITDA. The company also raised its fiscal year 2022 guidance.

Grocery Outlet Holding Corp. announced strong financial results for the second quarter of fiscal 2022. Net sales increased by 15.7% to $897.7 million, and comparable store sales increased by 11.2%. The company opened seven new stores, ending the quarter with 425 stores. Net income increased by 2.3% to $20.1 million, or $0.20 per diluted share. The company is raising its fiscal 2022 outlook on key metrics.

  • Net sales increased by 15.7% to $897.7 million.
  • Comparable store sales increased by 11.2%.
  • The Company opened seven new stores, ending the quarter with 425 stores in eight states.
  • Net income increased by 2.3% to $20.1 million, or $0.20 per diluted share.

Headline financials

Total Revenue

$898M

Previous: $776M+15.7%
EPS (adj)

$0.29

Previous: $0.23+26.1%
Comparable Store Sales

11.2%

Previous: -10.0%+212.0%
Total Stores

425

Previous: 400+6.3%
New Store Openings

7

Previous: 11-36.4%
Capital Expenditures

-$58.3M

Previous: -$64M+8.9%
Free Cash Flow

-$38.2M

Previous: -$44.3M+13.8%
Net Income

$20.1M

Previous: $19.6M+2.3%
Operating Income

$26.9M

Previous: $23.7M+13.7%
Gross Profit

$279M

Previous: $238M+17.5%
Cash & Equivalents

$84.3M

Previous: $127M-33.5%
Total Assets

$2.69B

Previous: $2.57B+5.0%
Stock-Based Comp

$9.48M

No prior period

Revenue & EPS history

Grocery Outlet · Revenue · Quarterly

$898M

Q2 2022+15.7%vs Q2 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

The Company is raising its fiscal 2022 outlook on key metrics.

Tailwinds

  • Net sales are expected to be $3.46 billion to $3.48 billion.
  • Comparable store sales increase is expected to be 8.0% to 8.5%.
  • Gross margin is expected to be approximately 30.6%.
  • Adjusted EBITDA is expected to be $218 million to $223 million.
  • Adjusted earnings per share - diluted is expected to be $0.97 to $1.00.

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 Q2 2022

Historical avgQ2 2022

-1.9%

Avg return

Earnings day

-0.2%

Avg return

5 days after

-3.3%

Avg return

30 days after

53%

17 / 32 earnings

Positive

+13.4%

Q3 2021

Best reaction

-30.2%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.5%-4.7%
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%
Q1 2018+5.2%+24.2%-1.8%
Q2 2019+5.2%+24.2%-1.8%
Q2 2018+5.2%+24.2%-1.8%

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