Quarterly ResultMay 13, 2026, 04:03 PM
Grocery Outlet Q1 Net Loss $180.3M; $158M Goodwill Impairment
AI Summary
Grocery Outlet reported a Q1 fiscal 2026 net loss of $180.3 million, or $(1.83) per diluted share, significantly impacted by a $158.0 million non-cash goodwill impairment and $18.2 million in restructuring charges. Net sales increased 3.6% to $1.17 billion, while comparable store sales declined by 1.0%. The company initiated an Optimization Plan to close 36 underperforming stores and reaffirmed its fiscal 2026 guidance.
Key Highlights
- Q1 net loss was $180.3 million, or $(1.83) per diluted share.
- Operating loss included a $158.0 million non-cash goodwill impairment.
- Restructuring charges of $18.2 million were incurred for the Optimization Plan.
- Net sales increased 3.6% to $1.17 billion.
- Comparable store sales declined by 1.0%.
- Gross margin decreased 80 basis points to 29.6%.
- Adjusted EBITDA was $43.1 million, down from $51.9 million year-over-year.
- Company initiated an Optimization Plan to close 36 underperforming stores.