Grocery Outlet Outlines Purchasing Strategy, Releases Fourth Quarter and Fiscal 2019 Financial Results
EMERYVILLE, CA - This week, Grocery Outlet released its financial results for the fourth quarter and full fiscal year 2019. Because the report was released as the West Coast grocer combats the challenges arising from the development of COVID-19, Grocery Outlet also outlined what strategies are working for it and its team as ways of keeping the supply chain strong, including its purchasing strategy.
“We remain committed to our value proposition to customers—offering deep value on branded and everyday consumables in an easy-to-shop environment,” said Eric Lindberg, CEO of Grocery Outlet. “As much as we’re focused on the present circumstances, we are not taking our eye off of our longer-term strategy. Our approach has been and will continue to be focused on making smart, disciplined investments to support our growth.”
Charles Bracher, Chief Financial Officer, echoed Lindberg’s sentiments, affirming that “while we’re adapting to the current operating environment, we continue to invest in our long-term growth opportunities.” These opportunities could build off of the growth Grocery Outlet achieved over the course of the last year.
According to a press release, highlights from Grocery Outlet’s fourth quarter ended December 28, 2019 included the following:
- Net sales increased by 12.0 percent to $655.5 million from $585.2 million in the fourth quarter of fiscal 2018; comparable store sales increased by 5.1 percent over a 4.1 percent increase in the same period last year
- Grocery Outlet opened ten new stores ending the quarter with 347 stores in six states
- Net income was $9.8 million compared to net loss of $4.6 million in the fourth quarter of fiscal 2018
- Adjusted EBITDA increased 5.6 percent to $41.5 million compared to $39.3 million in the fourth quarter of fiscal 2018
- Adjusted net income increased 67.8 percent to $19.9 million, or $0.21 per non-GAAP diluted share, compared to $11.9 million, or $0.17 per non-GAAP diluted share, in the fourth quarter of fiscal 2018
“All parts of the business are coming together to serve our customers; we are leaning on our strong purchasing organization, long-standing vendor relationships, flexible supply chain, and the tireless efforts of our community of independent operators and their employees in order to keep store shelves stocked,” continued Lindberg.
Highlights from Grocery Outlet’s 52-week fiscal year ended December 28, 2019, included the following:
- Net sales increased by 11.9 percent to $2.56 billion from $2.29 billion in the same period in fiscal 2018; comparable store sales increased by 5.2 percent over a 3.9 percent increase in fiscal 2018
- Adjusted EBITDA increased 10.6 percent to $169.8 million, compared to $153.6 million in the same period in fiscal 2018
- Adjusted net income increased 31.7 percent to $65.0 million, or $0.79 per non-GAAP diluted share, compared to $49.3 million, or $0.72 per non-GAAP diluted share, last year. As a result of our initial public offering in June 2019, our non-GAAP diluted weighted average shares outstanding increased to 81.9 million, compared to 68.5 million in the same period in fiscal 2018
To read Grocery Outlet’s financial report in its entirety, click here. And keep clicking back to AndNowUKnow for more fresh produce industry news like this.