Increase in Transactions Boost Grocery Outlet's Q4 Results

It was a strong fourth quarter for Grocery Outlet as the retailer reported double-digit sales growth driven by a combination of an increase in the number of transactions and average transaction size. 

For the 13-week period ended Dec. 31, net sales were $930.8 million, an increase of 18.9% from the comparable quarter the previous year. Comparable store sales were up 15.1%, buoyed by a 10% increase in the number of transactions and a 4.6% in average transaction size. Net income increased 139.3% to $15.9 million, or $0.16 per diluted share.

"We are very pleased with our fourth quarter results and the strong momentum in our business," said RJ Sheedy, president and CEO of Grocery Outlet. "Our merchandise assortment is better than ever, our pipeline of opportunistic products is healthy, our marketing message of value and savings is resonating with a broad base of consumers, and our Independent Operators are connecting with customers in their stores and throughout their communities.”

For fiscal year 2022, net sales increased by 16.2% to $3.58 billion. Comparable store sales increased by 11.8%, driven by a 5.9% increase in the number of transactions combined with a 5.6% increase in average transaction size. Net income increased 4.4% to $65.1 million, or $0.65 per diluted share.

For the year, the company opened 27 new stores and closed one location, finishing 2022 with 441 stores in eight states.

Looking ahead at fiscal year 2023, the Grocery Outlet is forecasting net sales of between $3.85 billion to $3.90 billion with comparable store sales growth of between 4.5% to 5.5%.