Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Grocery Outlet (GO) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
GO's Q1 results reflect comparable store sales growth, higher store traffic and notable margin improvements, fueling strong overall revenue performance.
Grocery Outlet Holding Corp. (NASDAQ:GO ) Q1 2025 Earnings Conference Call May 6, 2025 4:30 PM ET Company Participants Christine Chen - Vice President, Investor Relations Jason Potter - President & Chief Executive Officer Chris Miller - Chief Financial Officer Conference Call Participants Anthony Bonadio - Wells Fargo Corey Tarlowe - Jefferies Robbie Ohmes - Bank of America Matthew Rothway - UBS Tom Nass - TD Cowen John Heinbockel - Guggenheim Securities Joe Feldman - Telsey Advisory Group Michael Baker - D.A. Davidson Anthony Chukumba - Loop Capital Markets Simeon Gutman - Morgan Stanley Leah Jordan - Goldman Sachs Jeremy Hamblin - Craig-Hallam Group Operator Greetings, and welcome to the Grocery Outlet First Quarter 2025 Earnings Results Conference Call.
Although the revenue and EPS for Grocery Outlet (GO) give a sense of how its business performed in the quarter ended March 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Grocery Outlet Holding Corp. (GO) came out with quarterly earnings of $0.13 per share, beating the Zacks Consensus Estimate of $0.07 per share. This compares to earnings of $0.09 per share a year ago.
GO's opportunistic purchasing, targeted marketing, store expansion and e-commerce efforts are likely to have boosted its first-quarter sales.
Grocery Outlet (GO) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Sprouts Farmers shows strong momentum and expansion, while Grocery Outlet faces headwinds from system issues and margin pressure.
GO is focused on long-term growth, leveraging the unique model while navigating challenges and positioning itself for success in a competitive market.
4Q24 earnings showed mixed results: $1.1 billion in revenue with 2.9% SSS growth, but declining gross margins and increased operating expenses impacted profitability. Persistent SAP system issues continue to hurt GO's supply chain, inventory management, and new store growth potential, risking operator retention and overall business performance. Despite execution concerns, Grocery Outlet's low valuation suggests potential for stock price recovery on any positive news, making a sell rating unwarranted.
Grocery Outlet Holding Corp.'s Q4 earnings showed a sales increase to $1.1B, but EPS missed estimates, and gross margins declined due to inventory shrinkage. The company's financial position is concerning, with a high debt load and an interest coverage ratio below the desired threshold. Management's 2025 outlook disappointed investors, leading to a significant decline in share price and a cautious approach to future performance.