GO posts 1.1% comp gains in Q2 2025, with sales growth fueled by new stores, better in-stock execution and value-driven strategies.
Here is how Grocery Outlet Holding Corp. (GO) and Village Farms (VFF) have performed compared to their sector so far this year.
I maintain a hold rating on Grocery Outlet as tech fixes are progressing, but core demand and legacy store performance remain weak. Operational improvements, like the real-time order guide, are driving better inventory and modest comparable store sales growth, but not enough for a turnaround. Restructuring charges and flat underlying comps continue to pressure earnings, with management's 3Q25 guidance pointing to a sequential EPS decline.
Grocery Outlet Holding Corp. shares surged 42.7% after Q2 results beat adjusted EPS expectations and management raised full-year adjusted EPS guidance. Despite mixed profit metrics and margin pressure, store expansion and disciplined growth support a positive long-term outlook for the company. GO stock's valuation now appears attractive relative to peers, with shares trading on the cheaper side by several key multiples.
GO tops Q2 earnings estimates and lifts its FY25 EPS view, fueled by comparable sales growth and traffic gains.
Grocery Outlet Holding Corp. (NASDAQ:GO ) Q2 2025 Earnings Conference Call August 5, 2025 4:30 PM ET Company Participants Christopher M. Miller - EVP & CFO Ian Ferry - Corporate Participant Jason Potter - President, CEO & Director Conference Call Participants Anthony Bonadio - Wells Fargo Securities, LLC, Research Division Joseph Isaac Feldman - Telsey Advisory Group LLC Leah Dianne Jordan - Goldman Sachs Group, Inc., Research Division Mark David Carden - UBS Investment Bank, Research Division Michael Allen Baker - D.A.
Although the revenue and EPS for Grocery Outlet (GO) give a sense of how its business performed in the quarter ended June 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 $0.23 per share, beating the Zacks Consensus Estimate of $0.17 per share. This compares to earnings of $0.25 per share a year ago.
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.