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Looking back on non-discretionary retail stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Grocery Outlet (NASDAQ:GO) and its peers. Food is non-discretionary because it's essential for life (maybe not those Oreos?), so consumers naturally need a place to buy it. Selling food is a notoriously tough business, however, as the costs of procuring and transporting oftentimes perishable products and operating stores fit to sell those products can be high. Competition is also fierce because the alternatives are numerous. While online competition threatens all of retail, grocery is one of the least penetrated because of the nature of the product. Still, we could be one startup or innovation away from a paradigm shift. The 9 non-discretionary retail stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was in line. Thankfully, share prices of the companies have been resilient as they are up 5% on average since the latest earnings results. Due to its differentiated procurement and buying approach, Grocery Outlet (NASDAQ:GO) is a discount grocery store chain that offers substantial discounts on name-brand products. Grocery Outlet reported revenues of $1.17 billion, up 3.6% year on year. This print exceeded analysts’ expectations by 1.4%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS and EBITDA estimates. Grocery Outlet scored the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 26.6% since reporting and currently trades at $9.80. Is now the time to buy Grocery Outlet? Access our full analysis of the earnings results here, it’s free. With a higher focus on style and aesthetics compared to other large general merchandise retailers, Target (NYSE:TGT) serves the suburban consumer who is looking for a wide range of products under one roof. Target reported revenues of $25.44 billion, up 6.7% year on year, outperforming analysts’ expectations by 3.4%. The business had an exceptional quarter with a beat of analysts’ EPS and EBITDA estimates. The market seems happy with the results as the stock is up 5.1% since reporting. It currently trades at $133.75. Is now the time to buy Target? Access our full analysis of the earnings results here, it’s free. Known for its large-format Supercenters...

A month has gone by since the last earnings report for Grocery Outlet Holding Corp. (GO). Shares have added about 22.8% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Grocery Outlet due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers. Grocery Outlet Holding Corp. reported first-quarter 2026 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. While net sales increased year over year, earnings declined from the year-ago period. Results reflected improving traffic trends and progress in restoring the company’s opportunistic product mix, though comparable-store sales remained soft amid continued pressure on customer basket sizes. Adjusted EBITDA came in at the high end of management’s guidance range, and management reaffirmed the fiscal 2026 outlook despite ongoing margin and basket-size pressures. Grocery Outlet delivered adjusted earnings of 5 cents a share for the first quarter of fiscal 2026, beating the Zacks Consensus Estimate of 2 cents by 150%. The figure declined from adjusted earnings of 13 cents reported in the year-ago quarter.Net sales increased 3.6% year over year to $1,166.4 million and edged past the consensus mark of $1,153 million by 1.2%. The increase was primarily driven by contributions from new store openings, partially offset by lower comparable-store sales.Comparable-store sales declined 1% in the quarter compared to growth of 0.3% in the prior-year period. The drop stemmed from a 3.1% decrease in average transaction size, partly offset by a 2.1% increase in the number of transactions. Management noted that traffic trends improved sequentially throughout the quarter, with weekly traffic growth in March ranging between 2% and 5%.Management highlighted meaningful progress in increasing the mix of opportunistic products, which rose by nearly 2 percentage points since the start of the year. Grocery Outlet stated that these higher-value branded deals continue to resonate strongly with customers and support traffic recovery. Gross profit increased modestly to $345.2 million from $342.4 million in the year-ago quarter. However, gross margin contracted...

What a brutal six months it’s been for Grocery Outlet. The stock has dropped 29.1% and now trades at $7.89, rattling many shareholders. This may have investors wondering how to approach the situation. Is there a buying opportunity in Grocery Outlet, or does it present a risk to your portfolio? Dive into our full research report to see our analyst team’s opinion, it’s free. Even with the cheaper entry price, we're swiping left on Grocery Outlet for now. Here are three reasons why GO doesn't excite us and a stock we'd rather own. Same-store sales is a key performance indicator used to measure organic growth at brick-and-mortar shops for at least a year. Grocery Outlet’s demand within its existing locations has barely increased over the last two years as its same-store sales were flat. Operating margin is an important measure of profitability for retailers as it accounts for all expenses necessary to run a store, including wages, inventory, rent, advertising, and other administrative costs. Analyzing the trend in its profitability, Grocery Outlet’s operating margin decreased by 9.2 percentage points over the last year. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Grocery Outlet’s performance was poor no matter how you look at it - it shows that costs were rising and it couldn’t pass them onto its customers. Its operating margin for the trailing 12 months was negative 8%. Debt is a tool that can boost company returns but presents risks if used irresponsibly. As long-term investors, we aim to avoid companies taking excessive advantage of this instrument because it could lead to insolvency. Grocery Outlet’s $1.84 billion of debt exceeds the $59 million of cash on its balance sheet. Furthermore, its 7× net-debt-to-EBITDA ratio (based on its EBITDA of $245.5 million over the last 12 months) shows the company is overleveraged. At this level of debt, incremental borrowing becomes increasingly expensive and credit agencies could downgrade the company’s rating if profitability falls. Grocery Outlet could also be backed into a corner if the market turns unexpectedly – a situation we seek to avoid as investors in high-quality companies. We hope Grocery Outlet can improve its balance sheet and remain cautious until it increases it...

Grocery Outlet’s first quarter of 2026 was marked by improving store traffic, strengthened promotional efforts, and a sharper focus on restoring its value proposition. Management highlighted that positive transaction trends were driven by an increased mix of branded opportunistic products, targeted event promotions, and ongoing store refresh initiatives. CEO Jason Potter noted that weekly traffic growth accelerated throughout the quarter, with March seeing a notable uptick. While same-store sales declined, Potter emphasized, “the traction we see reinforces our conviction that we are taking the right actions,” pointing to early signs of stabilization as the company works to translate traffic gains into improved basket size. Is now the time to buy GO? Find out in our full research report (it’s free). Revenue: $1.17 billion vs analyst estimates of $1.15 billion (3.6% year-on-year growth, 1.4% beat) Adjusted EPS: $0.05 vs analyst estimates of $0.02 ($0.03 beat) Adjusted EBITDA: $43.12 million vs analyst estimates of $42.16 million (3.7% margin, 2.3% beat) The company reconfirmed its revenue guidance for the full year of $4.66 billion at the midpoint Management reiterated its full-year Adjusted EPS guidance of $0.50 at the midpoint EBITDA guidance for the full year is $227.5 million at the midpoint, in line with analyst expectations Operating Margin: -15.3%, down from -2% in the same quarter last year Locations: 549 at quarter end, up from 543 in the same quarter last year Same-Store Sales fell 1% year on year (0.3% in the same quarter last year) Market Capitalization: $803.3 million While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Edward Kelly (Wells Fargo) asked about the sustainability of margin guidance amid macro pressures. CFO Chris Miller explained that gross margins should improve as promotional spend decreases and opportunistic product mix increases, with fuel costs having a modest impact so far. Mark Carden (UBS) questioned the slower pace of store refreshes. CEO Jason Potter clarified that customer feedback remains positive but resources are being reallocated to prioritize execution on core value initiatives, w...

Shareholders might have noticed that Grocery Outlet Holding Corp. (NASDAQ:GO) filed its first-quarter result this time last week. The early response was not positive, with shares down 4.6% to US$7.67 in the past week. It was a pretty bad result overall; while revenues were in line with expectations at US$1.2b, statutory losses exploded to US$1.83 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Taking into account the latest results, Grocery Outlet Holding's 14 analysts currently expect revenues in 2026 to be US$4.66b, approximately in line with the last 12 months. Earnings are expected to improve, with Grocery Outlet Holding forecast to report a statutory profit of US$0.22 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$4.66b and earnings per share (EPS) of US$0.28 in 2026. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates. Check out our latest analysis for Grocery Outlet Holding Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 11% to US$8.46, suggesting the revised estimates are not indicative of a weaker long-term future for the business. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Grocery Outlet Holding at US$10.50 per share, while the most bearish prices it at US$6.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view. Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to...

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed Q1 performance to a deliberate focus on restoring the brand's 'treasure hunt' experience by increasing the mix of branded opportunistic products by nearly 2 percentage points. Positive traffic growth of approximately 2% was driven by event-based promotions around high-traffic occasions like the Super Bowl and Easter, which served as a bridge while opportunistic supply ramps up. The company is executing a strategic pivot to prioritize operational execution over the pace of store refreshes, aiming to reduce distractions and accelerate comparable store sales recovery. A new Annual Business Review (ABR) process was launched to provide independent operators with benchmarking data and profit-improvement roadmaps, specifically targeting shrink and sales mix. The restructuring of the store base is now complete with 36 underperforming stores closed, a move intended to improve fleet quality and strengthen the company's long-term earnings profile. Management noted that while traffic is stabilizing, basket pressure remains a headwind due to lower units per transaction, which they expect to address through improved product variety and value messaging. Q2 guidance assumes comparable store sales will decline between 1.5% and 2%, which includes a 50 basis point headwind from the timing of the Easter holiday. The company expects to spend approximately $20 million on promotional investments this year to bridge the gap until the opportunistic product mix reaches historical levels in the back half of the year. Management anticipates gross margins will improve in the second half of 2026 as promotional spending tapers off and higher-margin opportunistic deals become a larger component of the sales mix. New store growth will follow a more disciplined approach with higher hurdle rates for capital returns, targeting a 25% return for 2026 and pushing toward 30% for 2027. The company is actively exploring strategic options for the UGO business and expects to provide a substantial update later in 2026. Q1 gross margin was impacted by a 50 basis point headwind related to inventory liquidations and write-downs from the 36 planned store closures. A non-cash goodwill impairment charge of $158 million was recognized du...

Discount grocery store chain Grocery Outlet (NASDAQ:GO) will be announcing earnings results this Wednesday after market close. Here’s what to expect. Grocery Outlet missed analysts’ revenue expectations last quarter, reporting revenues of $1.22 billion, up 10.7% year on year. It was a softer quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly. Is Grocery Outlet a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, the market is expecting Grocery Outlet’s revenue to grow 2.2% year on year, slowing from the 8.5% increase it recorded in the same quarter last year. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Grocery Outlet has missed Wall Street’s revenue estimates multiple times over the last two years. Looking at Grocery Outlet’s peers in the non-discretionary retail segment, only Sprouts has reported results so far. It met analysts’ revenue estimates, delivering year-on-year sales growth of 4.1%. The stock traded up 15.1% on the results. Read our full analysis of Sprouts’s earnings results here. The market narrative shifted from AI-driven sector rotation in late 2025 to geopolitical shock as the US-Iran conflict dominated early 2026. While some of the non-discretionary retail stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.4% on average over the last month. Grocery Outlet is up 12% during the same time and is heading into earnings with an average analyst price target of $7.62 (compared to the current share price of $7.89). WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it. This is what the early days of Palantir looked like before it became a $437 billion giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.

This article first appeared on GuruFocus. Revenue: $1.17 billion, up 3.6% year-over-year. Comparable Store Sales: Declined 1%, slightly ahead of the outlook. Gross Margin: 29.6%, impacted by a 50 basis point due to store closures. Adjusted EBITDA: $43.1 million, representing 3.7% of net sales. Adjusted EPS: $0.05, $0.01 above guidance range. Net Loss: $180.3 million or $1.83 per share, primarily due to restructuring and goodwill impairment charges. Store Openings and Closures: Opened 7 new stores, closed 28 stores, ending the quarter with 549 stores. Cash and Debt: $59 million in cash, $489.3 million in total debt. Net Cash from Operating Activities: $52.6 million. Capital Expenditures: $56.8 million for the quarter. Warning! GuruFocus has detected 3 Warning Signs with GO. Is GO fairly valued? Test your thesis with our free DCF calculator. Release Date: May 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Grocery Outlet Holding Corp (NASDAQ:GO) reported Q1 revenue of $1.17 billion, up 3.6%, with traffic increasing by approximately 2%. The company achieved an adjusted EBITDA of $43.1 million, which was at the top end of their range. Grocery Outlet Holding Corp (NASDAQ:GO) has increased its mix of branded opportunistic products by nearly 2 percentage points, enhancing customer value perception. The store refresh program has been positively received, with 58 stores completed, improving layout, signage, and merchandising. The company has made progress in supporting independent operators with better analytical tools and insights, enhancing store-level performance. Comparable store sales declined by 1% in Q1, slightly ahead of the expected decline but still a negative trend. Gross margin decreased by 80 basis points year over year, impacted by promotional investments and store closures. The company incurred restructuring charges of $18.2 million and a noncash goodwill impairment charge of $158 million. Grocery Outlet Holding Corp (NASDAQ:GO) has reduced its target for store refreshes to 100 this year, indicating a slower pace than initially planned. The company is facing ongoing pressure on basket size, with units per transaction still under pressure despite traffic improvements. Q: Can you explain the rationale behind maintaining the full-year guidance despite macroeconomic pressures such as increased s...

Grocery Outlet Holding (NASDAQ:GO) reported first-quarter financial results on Wednesday. The transcript from the company's first-quarter earnings call has been provided below. Benzinga APIs provide real-time access to earnings call transcripts and financial data. Visit https://www.benzinga.com/apis/ to learn more. Access the full call at https://edge.media-server.com/mmc/p/uamrfqtr/ Grocery Outlet Holding reported Q1 2026 revenue of $1.17 billion, up 3.6% year-over-year, with comparable store sales down 1%, slightly better than expected. The company is focusing on restoring customer value perception by increasing the mix of branded opportunistic products and enhancing promotional efforts, with a $20 million investment planned for 2026. Grocery Outlet Holding completed 34 store refreshes in Q1 and plans to refresh 100 stores by year-end, prioritizing store-level performance improvements. The company closed 36 underperforming stores, expecting an adjusted EBITDA improvement of approximately $12 million annually due to restructuring. Grocery Outlet Holding is enhancing analytical tools and insights for independent operators, focusing on improving store performance and engagement. Management reaffirmed its full-year guidance, expecting improvements in gross margin and sales as opportunistic products increase in the mix. The company is exploring strategic options for its Ugo business and has made key hires to strengthen leadership, including a new Chief Marketing Officer. OPERATOR Greetings and welcome to the Grocery Outlet's first quarter 2026 earnings results conference call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ian Ferry, Senior Vice President of Strategic Finance and Investor Relations. Thank you. You may begin. Ian Ferry (Senior Vice President of Strategic Finance and Investor Relations) Good afternoon and welcome to Grocery Outlet's call to discuss financial results for the first quarter ended April 4, 2026. Speaking for management on today's call will be Jason Potter, President and Chief Executive Officer and Chris Miller, Chief Financial Officer. Following prepared remarks from Jason and Chris, we will open the call for questions. Please note that this conference call is be...

Interested in Grocery Outlet Holding Corp.? Here are five stocks we like better. Grocery Outlet’s Q1 revenue rose 3.6% to $1.17 billion, and comparable store sales declined 1%, a bit better than management expected. Traffic improved about 2%, but basket size remained under pressure as customers bought fewer units per visit. The company posted a net loss of $180.3 million, driven largely by $18.2 million in restructuring charges and a $158 million goodwill impairment tied to its lower market value. Excluding those items, adjusted EBITDA was $43.1 million, near the top of guidance. Management is focusing on rebuilding its opportunistic merchandise mix and using temporary promotional support to drive traffic, while slowing store refreshes to about 100 this year. Grocery Outlet reiterated full-year guidance and said it expects promotional spending to fade later in the year as inventory mix improves. Affirm's Google Deal Aims for Your Wallet Grocery Outlet (NASDAQ:GO) reported first-quarter fiscal 2026 results that management said were in line with its guidance, as the discount grocer works to restore comparable sales growth through a stronger mix of opportunistic merchandise, targeted promotions and operational changes. President and Chief Executive Officer Jason Potter said the company generated first-quarter revenue of $1.17 billion, up 3.6% from a year earlier. Comparable store sales declined 1%, which was slightly better than the company’s prior outlook for a decline of 1.5% to 2.5%. Traffic rose approximately 2%, but that was offset by continued pressure on basket size, driven by lower units per transaction. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? 3 Sectors That Look Most Vulnerable Ahead of May 15 “While we’re encouraged by the progress we’re beginning to see, we’re not satisfied with our current level of performance and are focused on the work we have in front of us,” Potter said. Chief Financial Officer Chris Miller said the company opened seven new stores and closed 28 during the quarter, ending the period with 549 stores across 16 states. The closures included 27 stores tied to a restructuring plan announced earlier in the year. Grocery Outlet closed the remaining nine restructuring-related stores in April. → MP Materials Is Quietly Building a Rare Earth Powerhouse AI Dividend Increases: 3 Massive Winners Boosting Payou...

Grocery Outlet Holding Corp. (GO) reported $1.17 billion in revenue for the quarter ended March 2026, representing a year-over-year increase of 3.6%. EPS of $0.05 for the same period compares to $0.13 a year ago. The reported revenue represents a surprise of +1.15% over the Zacks Consensus Estimate of $1.15 billion. With the consensus EPS estimate being $0.02, the EPS surprise was +122.22%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Grocery Outlet performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Total Store: 549 compared to the 574 average estimate based on four analysts. Comparable store sales growth: -1% versus the four-analyst average estimate of -2.1%. Number of new stores: 7 versus the two-analyst average estimate of 8. View all Key Company Metrics for Grocery Outlet here>>> Shares of Grocery Outlet have returned +10.9% over the past month versus the Zacks S&P 500 composite's +8.6% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Grocery Outlet Holding Corp. (GO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

EMERYVILLE, Calif., May 13, 2026 (GLOBE NEWSWIRE) -- Grocery Outlet Holding Corp. (NASDAQ: GO) ("Grocery Outlet," the "Company," "we" or "our") today announced financial results for the first quarter of fiscal 2026 ended April 4, 2026. Highlights for First Quarter Fiscal 2026 as compared to First Quarter Fiscal 2025: Net sales increased by 3.6% to $1.17 billion. Comparable store sales declined by 1.0%. Gross margin was 29.6% compared to 30.4% last year, a decline of 80 basis points, including a 50 basis point impact from inventory markdowns and write-offs associated with restructuring activities. Operating loss was $178.0 million, which included $158.0 million in non-cash goodwill impairment and $18.2 million in restructuring charges. Net loss was $180.3 million, or $(1.83) per diluted share, compared to net loss of $23.3 million, or $(0.24) per diluted share last year. Adjusted net income(1) was $4.6 million, or $0.05 diluted adjusted earnings per share(1), compared to $13.0 million, or $0.13 diluted adjusted earnings per share(1) last year. Adjusted EBITDA(1) was $43.1 million, representing 3.7% of net sales. “We delivered first quarter results consistent with our guidance, as our work to strengthen the business drove sequential improvements in comp-store sales throughout the quarter,” said Jason Potter, President and CEO of Grocery Outlet. “We made meaningful progress in increasing our opportunistic mix to offer more of the extreme value products that resonate with our customers. At the same time, we continued to advance our key strategic priorities to position Grocery Outlet to generate sustainable, profitable growth.” __________________________________ (1) Adjusted net income, diluted adjusted earnings per share, adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures, which exclude the impact of certain special items. Please note that our non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the "Non-GAAP Financial Information" section of this release as well as the respective reconciliations of our non-GAAP financial measures below for additional information about these items. First Quarter Fiscal 2026 Financial Summary Net sales increased 3.6% to $1.17 billion due to new store sales, partially offset by a 1.0% decr...