Grocery Outlet Holding Corp

Latest Results (15.04.2026):

Grocery Outlet Holding Corp. reported results for the fourth quarter of fiscal 2025 (14 weeks ended January 3, 2026). The quarter included a 53rd week, and while net sales rose, GAAP results were driven negative by sizable non‑cash impairment charges and goodwill write‑downs; the company also announced an Optimization Plan to close underperforming stores and reshape growth. Adjusted (non‑GAAP) metrics remained positive, and cash flow from operations improved year over year.

Revenue and same‑store sales

Net sales for Grocery Outlet Holding Corp. in Q4 FY2025 increased 10.7% to $1.22 billion (including $82.4M from the 53rd week). Comparable store sales declined 0.8% on a 13‑week basis for the quarter (full fiscal 2025 comps were +0.5% on a 52‑week basis).

Margins and gross profit

Gross profit for the quarter rose to $361.0M and gross margin was 29.7% (up 20 bps year over year), driven primarily by improved inventory management partially offset by price investments and mix shifts.

GAAP profitability impact

Grocery Outlet recorded an operating loss of $234.8M in Q4 FY2025, which included $110.2M of non‑cash long‑lived asset impairments and a $149.0M non‑cash goodwill impairment. GAAP net loss was $218.2M, or $(2.22) per diluted share (vs. net income of $2.3M, $0.02 per diluted share, in Q4 FY2024).

Adjusted results (non‑GAAP)

Adjusted net income for the quarter was $18.7M, or $0.19 diluted adjusted EPS, up from $14.5M ($0.15) a year earlier. Adjusted EBITDA for the quarter was $68.0M, representing 5.6% of net sales. For full fiscal 2025, adjusted EBITDA was $254.3M (5.4% of net sales) and adjusted net income was $75.2M ($0.76 diluted adjusted EPS).

Store footprint and operating actions

At quarter end Grocery Outlet operated 570 stores (opened 7 in Q4; 42 opened and 5 closed in fiscal 2025). The company announced an Optimization Plan to close 36 underperforming stores (and related lease/operator terminations/subleases) expected to be substantially completed in fiscal 2026.

Restructuring costs and 2026 estimates

In connection with the Optimization Plan and prior Restructuring Plan, the company recognized material non‑cash impairments in Q4 FY2025 and expects FY2026 restructuring-related net charges of $14M–$25M, $51M–$63M of estimated cash expenditures (primarily lease termination fees), and a potential $4M–$6M gross profit impact from inventory markdowns during closures.

Cash flow and capital spending

Net cash provided by operating activities for fiscal 2025 was $222.1M (vs. $112.0M prior year), driven by improved inventory management and timing of payments. Capital expenditures (net of tenant allowances) were $191.9M in fiscal 2025.

Fiscal 2026 outlook

Guidance for fiscal 2026: net new store openings (net) 30–33 (excludes Optimization closures), net sales $4.60B–$4.72B, comparable store sales change (‑2.0% to 0.0%), gross margin 29.7%–30.0%, adjusted EBITDA $220M–$235M, diluted adjusted EPS $0.45–$0.55, and net capex $170M. The company notes FY2026 will report 52 weeks versus 53 in FY2025.