Grocery Outlet (GO) investor relations material

Executive summary

• Net sales rose 4.5% year-over-year to $1.18 billion in Q2, with comparable store sales up 1.1% driven by increased transactions but lower average transaction size.

• Adjusted EBITDA was $67.7 million (5.7% margin), nearly flat year-over-year; adjusted net income was $22.8 million ($0.23 per diluted share).

• Operating income was $12.8 million, including $11.2 million in restructuring charges; net income was $5.0 million, down from $14.0 million last year.

• 11 new stores opened and 2 closed, ending Q2 with 552 stores across 16 states; United Grocery Outlet acquisition in April 2024 added 40 stores.

• Strategic focus on new store performance, talent acquisition, execution gaps, and scaling execution.

Financial highlights

• Net sales: $1.18 billion for Q2 2025, up 4.5% year-over-year; $2.31 billion for the first half, up 6.5%.

• Gross margin: 30.6% for Q2 (down 30 bps YoY, up 20 bps sequentially); first half gross margin 30.5% (up 30 bps YoY).

• SG&A: $336.8 million, up 4.2% YoY, 28.5% of net sales, down 10 bps as a percentage of sales.

• Net income: $5.0 million for Q2 2025 ($0.05 per diluted share), down from $14.0 million last year; adjusted net income: $22.8 million ($0.23 per share).

• Adjusted EBITDA: $67.7 million for Q2 2025 (5.7% margin), nearly flat YoY; first half adjusted EBITDA: $119.6 million (5.2% margin).

Outlook and guidance

• Fiscal 2025 guidance: net sales $4.7–$4.8 billion, comparable store sales growth 1–2%, gross margin 30–30.5%, adjusted EBITDA $260–$270 million, 33–35 net new stores.

• Adjusted EPS guidance raised to $0.75–$0.80 (from $0.70–$0.75); capital expenditures expected at $210 million.

• Q3 guidance: comp sales 1.5–2%, nine net new stores, gross margin 30–30.5%, adjusted EBITDA $63–$67 million, adjusted EPS $0.17–$0.19.

• Restructuring plan actions substantially completed in Q2 2025; total estimated restructuring costs of $63 million, with $39 million expected as cash expenditures.