Grocery Outlet Holdings Corp GO shares are soaring after reporting second-quarter earnings on Tuesday.
Net sales came in at $645.3 million, up from $575.1 million in the same quarter of last year. Earnings came in at 20 cents per share, which beat the analyst estimate by 7 cents.
"We are pleased with our second-quarter financial performance which reflects consistent comparable sales growth, strong new store performance, and gross margin expansion," said CEO Eric Lindberg. "Our comparable store sales growth was broad-based across product categories, regions, and store vintages. We attribute the consistency of our performance to our unique business model that provides customers unbeatable value in a fun, treasure hunt experience along with great customer service through our local independent operators.
"We remain focused on driving sales growth by delivering incredible savings on name-brand products and creating a WOW! experience for our customers. At the same time, we look to continue expanding our store base and reinvesting in our people, systems and infrastructure to support our long-term growth objectives."
Highlights
- Net sales increased 12.2%
- Comp-store sales increased 5.8%
- Adjusted EBITDA increased 15%
- 8 new stores opened
Grocery Outlet shares traded higher by 13.7% at $42.75 in the after-hours session. The stock closed at $37.60.
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