Grocery Outlet Holding Corp (NASDAQ:GO) reported better-than-expected results for its first quarter, with a 17.4% growth in comparable store sales.
The company, out of Emeryville, Calif., revealed net sales increased by 25.4% to $760.3 million from $606.3 million in the first quarter of fiscal 2019; comparable store sales increased by 17.4% compared to a 4.2% increase in the same period last year.
What’s more, net income increased by 235.0% to $12.6 million, or $0.13 per diluted share, compared to $3.8 million, or $0.06 per diluted share, in the first quarter of fiscal 2019. Adjusted EBITDA increased 45.8% to $57.0 million compared to $39.1 million in the first quarter of fiscal 2019.
The Company opened eight net new stores ending the quarter with 355 stores in six states.
CEO Eric Lindberg said "Our strong first-quarter performance reflects the tremendous efforts of our corporate and Independent Operator teams, our suppliers, and other partner companies. We continue to leverage the many strengths of our business model and adapt processes to meet the demands of the current environment.
"Our top priorities remain centered around ensuring the safety of our team and communities, supporting IOs, working with suppliers to purchase product, and continuing to deliver strong operational execution."
Grocery Outlet expects to open between 28 and 30 stores this year with no additional closures planned. The Company continues to build its real estate pipeline to support 10% annual unit growth in the future.
GO shares gained 61 cents, or 1.7%, to $37.28
