Grocery Outlet Q1 Beat, Stock Rises 12.8%

Grocery Outlet Holding Corp reported Q1 adjusted EPS of $0.05 versus $0.03 estimate, and revenue $1.17 bn beating $1.15 bn forecast.
Net sales rose 3.6% YoY from new stores, comparable sales fell 1.0%, gross margin slipped 80 bps to 29.6%.
GAAP net loss widened to $180.3 million, driven by a $158 million goodwill impairment and $18.2 million restructuring charge under its Optimization Plan.
Company reaffirmed FY EPS $0.45‑$0.55 and revenue $4.6‑$4.72 bn, matching consensus, closed 27 stores, opened seven, total 549 locations.