Grocery Outlet Reports First Quarter 2022 Results; Eric Lindberg and Charles Bracher Comment
EMERYVILLE, CA - Showing that its growth strategy has been a success over the past year, Grocery Outlet recently announced its financial results for the first quarter of fiscal 2022. Among the highlights was an increase in net sales by $78 million from the same quarter last year, equaling a 10.5 percent rise.
“We are excited about our year-to-date performance, including better-than-expected top and bottom-line results in the first quarter. Traffic trends in the second quarter are strong as we believe consumers are increasingly looking to stretch their shopping dollar in light of inflation,” Eric Lindberg, Chief Executive Officer, stated. “As we look across our business, we are encouraged by the health of our supply pipeline as well as the excitement and dedication of our independent operators. In addition, we continue to make important investments in support of future growth, which reinforces our confidence in delivering strong shareholder returns over the long term.”
In addition to its $831.4 million in net sales, other key points from the report include:
- Comparable store sales increased by 5.2 percent and on a 3-year stacked basis increased 14.3 percent
- The company opened four new stores and closed one, ending the quarter with 418 stores in seven states
- Adjusted EBITDA increased 0.8 percent to $49.3 million
Based on these positive results, the retailer has adjusted some of its previous outlooks for the entire 2022 fiscal year, such as now anticipating net sales to range from $3.39 billion to $3.42 billion as opposed to the previously projected $3.33 billion to $3.38 range.
“Our unique business model and compelling value proposition are increasingly relevant to customers in light of the current macroeconomic environment. Reflecting our strong first quarter results and continued momentum, we are raising our net sales and earnings guidance for fiscal 2022,” Charles Bracher, Chief Financial Officer, commented. “And while we continue to prioritize investments in support of future growth, we recently utilized $75 million of excess cash to opportunistically reduce leverage given rising interest rates.”
To see how Grocery Outlet’s strategy plays out, keep reading AndNowUKnow.