Grocery Outlet Holding Corp. Announces Preliminary Results for the Fourth Quarter and Full Year 2019
January 27, 2020 at 09:16 pm
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Grocery Outlet Holding Corp. announced preliminary results for the fourth quarter and full year 2019. For the thirteen weeks ended December 28, 2019, the company expects net sales growth of 12.0% to $655.5 million compared to $585.2 million for the thirteen weeks ended December 29, 2018. The increase is primarily attributable to 31 net new stores opened over the last 12 months as well as an increase in comparable store sales. Comparable store sales growth of 5.1% compared to the same period of 2018 driven by increases in both the number of customer transactions and average transaction size. Income from operations of between $15.6 million and $16.1 million, compared to $13.9 million for the thirteen weeks ended December 29, 2018, an increase of $1.9 million or 14.1%, calculated using the midpoint of the range. Net income to be between $6.3 million and $6.7 million, compared to a loss of $4.6 million for the thirteen weeks ended December 29, 2018, an increase of $11.1 million, calculated using the midpoint of the range.
For the fiscal year ended December 28, 2019, the company expects net sales growth of 11.9% to $2.56 billion compared to $2.29 billion for the fiscal year ended December 29, 2018. The increase is primarily attributable to 31 net new stores opened over the last 12 months as well as an increase in comparable store sales. Comparable store sales growth of 5.2% compared to the same period of 2018 driven by increases in both the number of customer transactions and average transaction size. Income from operations of between $66.9 million and $67.4 million, compared to $82.5 million for the fiscal year ended December 29, 2018, a decrease of $15.4 million or 18.6%, calculated using the midpoint of the range. Income from operations for the fiscal year ended December 28, 2019 reflects an estimated $31.9 million of stock-based compensation expense, which primarily consisted of non-cash stock compensation expense that is now recognized as a result of initial public offering in June 2019. Net income to be between $11.9 million and $12.3 million, compared to $15.9 million for the fiscal year ended December 29, 2018, a decrease of $3.8 million or 23.7%, calculated using the midpoint of the range.
Grocery Outlet Holding Corp. is a retailer of name-brand consumables and fresh products sold through a network of independently operated stores. The Company operates over 470 stores in California, Washington, Oregon, Pennsylvania, Idaho, Nevada, Maryland, New Jersey and Ohio. Its product offering includes staples, across grocery, refrigerated and frozen foods, beer and wine, fresh meat and seafood, and health and beauty care, others. It distributes inventory through eight primary distribution centers, three of which it operates and five of which are operated by third parties. It has an in-house transportation fleet, as well as transportation partner relationships. It also owns United Grocery Outlet, a closeout grocery retailer with over 40 stores in Tennessee, North Carolina, Georgia, Alabama, Kentucky, and Virginia. It is focused on centralized marketing efforts primarily on digital ads, emailed WOW! Alerts, social media and radio commercials, and in-store and outdoor signage.
GROCERY OUTLET HOLDING CORP. 
