Grocery Outlet Shares Surge After Q2 Earnings

Grocery Outlet Holdings Corp GO shares are soaring after reporting second-quarter earnings on Tuesday.

Net sales came in at $645.3 million, up from $575.1 million in the same quarter of last year. Earnings came in at 20 cents cents per share, which beat the analyst estimate by 7 cents.

"We are pleased with our second quarter financial performance which reflects consistent comparable sales growth, strong new store performance and gross margin expansion," said CEO Eric Lindberg. "Our comparable store sales growth was broad-based across product categories, regions, and store vintages. We attribute the consistency of our performance to our unique business model that provides customers unbeatable value in a fun, treasure hunt experience along with great customer service through our local independent operators.

"We remain focused on driving sales growth by delivering incredible savings on name-brand products and creating a WOW! experience for our customers. At the same time, we look to continue expanding our store base and reinvesting in our people, systems and infrastructure to support our long-term growth objectives."

Highlights

• Net sales increased 12.2%
• Comp store sales increased 5.8%
• Adjusted EBITDA increased 15%
• 8 new stores opened

Grocery Outlet shares traded higher by 13.7% at $42.75 in the after-hours session. The stock closed at $37.60.