New systems put in place during the third quarter came up big for Grocery Outlet, as the retailer hit the $1 billion mark in net sales.
The quarterly result was a 9.3% increase year-over-year and marked a 13-week period that saw solid results across the board.
Comparable store sales were up 6.4% vs. third quarter 2022, and Grocery Outlet’s gross margin increased 31.4% year-over-year.
Net income increased 55.1% to $27.1 million during the quarter, and adjusted net income rose 23.4% to $31 million.
Adjusted EBITDA came in at $68.1 million, a 20% increase year-over-year.
Eight stores were also opened during the third quarter.
“We are pleased with our third quarter performance and the underlying trends in our business,” said RJ Sheedy, CEO of Grocery Outlet. “During the third quarter, we implemented new systems to improve capabilities and drive efficiencies as we scale for future growth.
“Despite operational challenges during the transition, we delivered strong results including same store sales growth, gross margin expansion, and bottom-line leverage. Our value proposition continues to resonate with consumers, and we are gaining market share.”
For FY 2023, Grocery Outlet, based in Emeryville, Calif., is looking at net sales of $3.95 billion, a 7% to 7.5% increase in comparable store sales and a gross margin of 31.2%. Adjusted EBITDA is projected to be in the range of $248 million to $252 million.