US-based discount closeout retailer Grocery Outlet has reported a 16.1% increase in net sales to $965.5m for the first quarter (Q1) of fiscal year (FY) 2023.
The company’s comparable store sales were up 12.1% in the quarter. The growth has been attributed to a 7.9% rise in the number of transactions and a 3.9% average transaction size increase.
In Q1, net income rose by 18.5% to $13.7m, or $0.14 per diluted share and adjusted net income was up by 40.7% to $27.0m, or $0.27 per adjusted diluted share.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) were $63.1m, an increase of 36.9%.
The company opened three new stores and ended Q1 with 444 stores in eight US states. Net cash provided by operating activities was $87.6m.
Grocery Outlet president and CEO RJ Sheedy said: “Our first quarter performance exceeded expectations driven by strong same-store sales results, gross margin expansion and bottom-line leverage.
“We are encouraged by the growth in transactions as we are attracting new customers and our existing customers are shopping with us more often.
“We are delivering on our mission of Touching Lives for the Better and we continue to execute our strategic growth initiatives to maximise long-term shareholder value.”
The company has revised its FY23 outlook and expects $3.90bn in net sales, a 5.0% to 6.0% increase in comparable store sales and $240m to $246m in adjusted EBITDA.