Grocery Outlet Closes Fiscal Year With Strong Q4
Strong growth in traffic and transaction growth were the key factors driving revenue for Grocery Outlet during its fourth quarter.
Net sales for the quarter ended December 30 were up 6.3% to $989.8 million with comparable stores sales up 2.7%. However, net income in the quarter was down 11.2% to $14.1 million or $0.14 per diluted share.
"Our value proposition continues to resonate with consumers resulting in strong traffic and transaction count growth. During 2023, we increased our market share, achieved record sales of $4 billion, and grew Adjusted EBITDA by 18%," said RJ Sheedy, CEO of Grocery Outlet. "Looking ahead, we are excited to be acquiring United Grocery Outlet and the platform that it will provide to support future store growth in the Southeast."
For the full fiscal year, net sales at Grocery Outlet increased 10.9% to $3.97 billion. Comparable store sales were up 7.5% and net income increased 22.1% to $79.4 million, or $0.79 per diluted share.
As previously announced, Grocery Outlet agreed on February 14 to acquire United Grocery Outlet (UGO), an extreme value, discount grocery retailer with 40 stores located in the Southeastern United States and a distribution center in Tennessee.
According to Grocery Outlet, this acquisition will expand Grocery Outlet’s store reach into the new states of Tennessee, North Carolina, Georgia, Alabama, Kentucky, and Virginia. The deal is expected to close early in the second quarter of fiscal 2024 and remains subject to customary closing conditions.
