US retailer Grocery Outlet reported a 0.9% rise in third quarter (Q3) net sales to $1.18bn, as new stores opened and comparable store sales returned to growth.
For Q3 ended 3 October 2026, comparable store sales grew by 0.5%.
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Operating income rose to $24m from $22.8m, while net income was $13.3m against $11.6m in Q3 2025.
Adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) declined to $59.4m from $66.7m.
During the quarter, Grocery Outlet opened 14 stores and made no closures, bringing its estate to 561 stores in 16 US states.
Grocery Outlet president and CEO Jason Potter said: “In the third quarter we returned to positive comparable store sales, driven by continued improvements to the execution of our opportunistic product offering.
“Traffic accelerated and basket trends again improved sequentially as we enhanced our value proposition.”
For the first nine months ended 3 October 2026, sales rose by 1.8% to $3.54bn, while comparable sales fell by 0.2%.
The operating loss was $138.2m, compared with operating income of $13.1m in the same period of the previous year.
This included a $158m non-cash goodwill impairment charge and $20.1m in net restructuring charges.Top of Form
Net loss widened to $161.4m, up from $6.8m a year earlier.Top of Form
Its Optimisation Plan, launched in Q1 fiscal 2026, permanently closed 36 underperforming stores in March and April.
Grocery Outlet said it had substantially completed terminations of operator agreements with independent operators at these and select other sites.
Estimated net restructuring charges increased to $22m-$29m because of lease termination and idle property costs. Actions and financial effects are expected to conclude by Q4 fiscal 2027.
The company updated its guidance for full-year fiscal 2026.
Comparable store sales growth was revised upward to 0.2%-0.4%, from -0.5%-0.0%, while net sales are maintained at $4.70bn-$4.72bn and gross margin is maintained at 29.8%-30.0%.
It expects 30-31 net new openings, excluding plan closures, versus 30-33.
