Grocery Outlet Reports 1B in Sales in Third Quarter Fiscal 2023 Financial Results; RJ Sheedy Comments
EMERYVILLE, CA - Grocery Outlet has officially announced its financial results for the third quarter of fiscal 2023. Among a host of other strategic developments, the retailer revealed that its net sales for the quarter increased by 9.3 percent to $1 billion.
"We are pleased with our third quarter performance and the underlying trends in our business," said RJ Sheedy, Chief Executive Officer of Grocery Outlet. "During the third quarter, we implemented new systems to improve capabilities and drive efficiencies as we scale for future growth. Despite operational challenges during the transition, we delivered strong results including same-store sales growth, gross margin expansion, and bottom-line leverage. Our value proposition continues to resonate with consumers, and we are gaining market share."
The company also shared several other updates for Q3 of the fiscal year 2023 as compared to Q3 in 2022:
- Comparable store sales increased by 6.4 percent
- Gross margin increased to 31.4 percent, 80 basis points over the third quarter of last year
- Opened eight new stores, ending the quarter with 455 stores in eight states
- Net income increased 55.1 percent to $27.1 million, or $0.27 per diluted share
- Adjusted EBITDA increased by 20 percent to $68.1 million
- Adjusted net income increased by 23.4 percent to $31 million
In addition, Grocery Outlet shared its highlights for the 39 weeks ended September 30, 2023, as compared to the 39 weeks ended October 1, 2022, in which:
- Net sales increased by 12.6 percent to $2.98 billion
- Comparable store sales increased by 9.2 percent
- Net income increased 32.9 percent to $65.3 million
Just last month, the retailer also pulled back the curtain on its inaugural Environmental, Social, and Governance Report.
"We are extremely proud to have recently published our first annual ESG report," Sheedy continued. "This report showcases the positive impact that we have on our communities, our people, and our planet. Our mission of Touching Lives for the Better has always been at the heart of our business, and fulfilling this purpose has resulted in positive environmental and social impact throughout our 77-year history."
For more details on the report, click here.
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