Grocery Outlet Holding Corp

Grocery Outlet Holding Corp. reported second-quarter 2026 results that beat the Zacks Consensus Estimate on both the top and bottom lines and raised several components of its fiscal 2026 outlook. Adjusted earnings came in at 20 cents a share, topping the consensus estimate of 12 cents by 66.7%, though down from 23 cents a year earlier, while net sales rose 1.1% year over year to $1,192.8 million, surpassing the consensus mark of $1,167 million by 2.2%. Comparable-store sales declined 0.3%, improving from the 1% drop in the first quarter, as a 2.1% decline in average transaction size was partly offset by a 1.8% increase in transactions. Gross margin contracted 40 basis points to 30.2%, and adjusted EBITDA fell 3.1% to $65.7 million, while operating income rose to $15.8 million from $12.8 million. The company opened 10 new stores and closed 12, including nine under its Optimization Plan, ending the quarter with 547 stores across 16 states, and now expects fiscal 2026 net sales of $4.70-$4.72 billion, comparable-store sales between flat and down 0.5%, adjusted EBITDA of $225-$235 million and adjusted earnings per share of 51-55 cents.

Grocery Outlet Holding Corp.'s Chief Purchasing and Merchandising Officer Paul Blaine Miller purchased 8,000 shares on August 20, 2026, according to an SEC Form 4 filing. The transaction was valued at $87,200 based on a weighted average purchase price of $10.90 per share, while the stock closed at $11.11 that day. The purchase increased Miller's direct holdings from 64,171 to 72,171 shares, a 12% jump, and his post-transaction stake was worth $801,819.81. Grocery Outlet reported trailing twelve-month revenue of $4.7 billion and a net loss of $381.3 million, with a market capitalization of $1.1 billion. The stock has fallen about 40% from its 52-week high of $19.23, and Miller's buy signals a bullish outlook after the company revised its same-store sales forecast to no more than a 0.5% year-over-year decline.

Costco reported fiscal second quarter revenue of $70.53 billion, up 11.6% year over year and beating analyst estimates by 1.5%, making it the fastest-growing among the four non-discretionary retail stocks tracked. Grocery Outlet posted revenue of $1.19 billion, up 1.1% and exceeding expectations by 2.1%, with its stock rising 6.9% since the report. Albertsons reported revenue of $24.94 billion, flat year over year and missing full-year EBITDA guidance, sending shares down 14.4%. Sprouts Farmers Market reported revenue of $2.33 billion, up 4.7% and in line with estimates, but issued weaker-than-expected EPS guidance for the next quarter and full year.

Grocery Outlet shares jumped 8.8% in afternoon trading after the discount grocer reported second-quarter fiscal 2026 results that beat analyst expectations and raised its full-year financial outlook. The company posted adjusted EPS of $0.20, beating the consensus estimate of $0.12 to $0.13, while net sales of $1.19 billion also topped forecasts. Management lifted full-year 2026 guidance to net sales of $4.70 billion to $4.72 billion and adjusted EPS of $0.51 to $0.55. The stock cooled to close at $10.78, up 5.2% from the previous close.

Several companies saw significant premarket moves following their latest earnings reports. Tapestry dropped 7% after fiscal fourth-quarter revenue of $1.88 billion only slightly exceeded estimates, while Yeti slipped nearly 4% despite beating earnings expectations. Cerebras Systems tumbled nearly 18% after second-quarter revenue of $180 million missed the $194 million LSEG consensus, and StubHub lost almost 17% on weaker-than-expected adjusted gross margin. Birkenstock jumped 10% on better-than-expected quarterly results and raised full-year guidance, while EnerSys gained 13% after earnings and revenue topped Wall Street forecasts. Grocery Outlet rose 9% and Jack in the Box added more than 6% on earnings beats.

Non-discretionary retail stocks reported a satisfactory first quarter, with revenues beating analysts' consensus estimates by 1.5% and next quarter's revenue guidance in line. Grocery Outlet posted revenues of $1.17 billion, up 3.6% year on year, and scored the highest full-year guidance raise of the group, sending its stock up 26.6% since reporting. Target delivered the best quarter with revenues of $25.44 billion, up 6.7% year on year, beating expectations by 3.4%. Walmart, despite revenues of $177.8 billion up 7.3% year on year, was the weakest performer after issuing full-year EPS guidance that missed analysts' expectations, causing its stock to fall 12.4%. Dollar Tree reported revenues of $4.98 billion, up 7.2% year on year, and delivered the highest guidance raise but the weakest full-year guidance update among its peers, while Kroger's revenues of $46.12 billion, up 2.2% year on year, represented the slowest revenue growth in the group.

Non-discretionary retail stocks reported a satisfactory first quarter, with revenues beating analysts' consensus estimates by 1.5% and next quarter's revenue guidance in line. Target delivered the best performance, reporting revenues of $25.44 billion, up 6.7% year on year and exceeding expectations by 3.4%, while also beating EPS and EBITDA estimates. Walmart had the weakest guidance update, with revenues of $177.8 billion, up 7.3% year on year, but full-year EPS guidance and next quarter's EPS guidance missed expectations. Dollar General reported revenues of $10.79 billion, up 3.4% year on year, in line with estimates, but delivered the weakest performance against analyst estimates of the group. Grocery Outlet achieved the highest full-year guidance raise among its peers, with revenues of $1.17 billion, up 3.6% year on year, beating estimates by 1.4%. Costco delivered the fastest revenue growth, with revenues of $70.53 billion, up 11.6% year on year, beating estimates by 1.5%, though it missed EBITDA estimates.

Grocery store stocks delivered mixed fourth-quarter results, with aggregate revenues beating analyst consensus estimates by 0.7%. Albertsons reported revenues of $19.12 billion, up 1.9% year on year and in line with expectations, but its stock fell 17.4% since reporting. Grocery Outlet posted the best performance, with revenues of $1.17 billion exceeding estimates by 1.4% and its stock rising 22.3%. Kroger's revenues of $46.12 billion beat estimates by 1.4%, yet its stock declined 11% after a gross margin miss. Sprouts Farmers Market recorded the fastest revenue growth among peers at 4.1% to $2.33 billion, and its stock gained 18.7% despite full-year EPS guidance missing expectations.

Grocery Outlet Holding Corp. has launched its 16th annual 'Independence from Hunger' food drive, running from June 24 through July 31, and is expanding the campaign's reach through a new partnership with Feeding America. The campaign will collect in-store and online donations, as well as offer pre-made bags of nonperishable food for donation at more than 540 Grocery Outlet stores nationwide. Online donations will be evenly split between the Alameda County, L.A. Regional, Oregon and Central Pennsylvania food banks, while in-store donations continue to benefit local Feeding America network members. To further amplify awareness, Grocery Outlet will debut a first-of-its-kind four-day national livestream marathon featuring Independent Operators, real-time donation challenges, and local store spotlights. Since the campaign began in 2011, Grocery Outlet and its Independent Operators have helped raise more than $30 million to support local food agencies.