EMERYVILLE, CA - Grocery Outlet has announced financial results for the third quarter of fiscal 2024 ended September 28, 2024, with a net sales increase of 10.4 percent to $1.11 billion and the successful opening of five new stores, ending the quarter with 529 stores in 16 states.
“Our double-digit third quarter net sales growth reflects the strong positioning of our consumer offering—value continues to win in the market and we continue to grow our share of consumer non-discretionary spending,” shared Eric Lindberg, Chairman, Interim President, and Chief Executive Officer. “While these results were generally consistent with our expectations, our execution limited growth and earnings during the period. Challenges with the systems conversion have hindered our performance over the past year, and while we have made substantial progress on the implementation, it is critical that we return our focus to what we do best: executing well on the fundamentals and delivering outstanding value to our customers through our dedicated independent operators.”
Here are some highlights from the financial report:
- Comparable store sales increased by 1.2 percent, driven by a 2.0 percent increase in the number of transactions, partially offset by a 0.7 percent decrease in average transaction size
- Gross margin decreased by 30 basis points to 31.1 percent
- Net income decreased 10.9 percent to $24.2 million, or $0.24 per diluted share
- Adjusted EBITDA increased by 6.0 percent to $72.3 million, or 6.5 percent of net sales
According to the report, for the 39 weeks that ended September 30, 2023, comparable store sales increased by 2.6 percent, driven by a 4.6 percent increase in the number of transactions, partially offset by a 1.9 percent decrease in average transaction size. Additionally, adjusted EBITDA decreased by 11.0 percent to $179.5 million, or 5.5 percent of net sales during this time.
For the full details of the financial report, click here.
And stay tuned to ANUK for more quarterly reports as the fiscal year comes to close.
