Grocery Outlet Reports Second Quarter Fiscal 2024 Financial Results

Strategic Insights -

Grocery Outlet Holding Corp. has announced financial results for the second quarter of fiscal 2024, with key highlights including an 11.7% increase in net sales to $1.13 billion, driven by a 2.9% increase in comparable store sales. The company's gross margin decreased by 140 basis points to 30.9%, primarily due to disruptions resulting from the implementation of new technology platforms. Adjusted EBITDA decreased by 3.7% to $67.9 million, and adjusted net income decreased by 21.4% to $25.1 million.

Key Takeaways:

  • Net sales increased by 11.7% to $1.13 billion, driven by a 2.9% increase in comparable store sales.
  • Gross margin decreased by 140 basis points to 30.9%, primarily due to disruptions resulting from the implementation of new technology platforms.
  • Adjusted EBITDA decreased by 3.7% to $67.9 million, and adjusted net income decreased by 21.4% to $25.1 million.
  • The company opened 11 new stores and closed one store, ending the quarter with 524 stores in 16 states.
  • Total debt was $379.2 million at the end of the second quarter of fiscal 2024, net of unamortized debt issuance costs.
  • Net cash provided by operating activities during the second quarter of fiscal 2024 was $41.6 million.
  • Capital expenditures for the second quarter of fiscal 2024, before the impact of tenant improvement allowances, were $42.4 million.

Statistics:

  • Net sales: $1.13 billion (up 11.7% from Q2 2023)
  • Comparable store sales increase: 2.9%
  • Gross margin: 30.9% (down 140 basis points from Q2 2023)
  • Adjusted EBITDA: $67.9 million (down 3.7% from Q2 2023)
  • Adjusted net income: $25.1 million (down 21.4% from Q2 2023)
  • Total debt: $379.2 million (net of unamortized debt issuance costs)
  • Net cash provided by operating activities: $41.6 million
  • Capital expenditures (net of tenant improvement allowances): $40.2 million

Sources:

  • Grocery Outlet Holding Corp. Press Release, dated August 6, 2024 (Source: investors.groceryoutlet.com)
  • Grocery Outlet Holding Corp. Form 10-Q for the fiscal quarter ended June 29, 2024 (Source: sec.gov)