Grocery Outlet Holding Corp. (NASDAQ: GO) reported Q2 EPS of $0.42, $0.19 better than the analyst estimate of $0.23. Revenue for the quarter came in at $803.4 million versus the consensus estimate of $781.02 million.

Eric Lindberg, CEO of Grocery Outlet, stated, “We are very pleased with our strong operational execution in the second quarter. Our financial results reflect incredible teamwork across the organization including our independent operators, distribution center teams, and our corporate staff. While the safety of our communities and the entire Grocery Outlet team is our number one priority, we remain committed to delivering exceptional value to our customers while continuing to extend our reach. Consistent with our approach to reinvesting in the business, we are accelerating talent and operational initiatives which we believe will drive long-term growth and shareholder value.”

GUIDANCE:

Charles Bracher, Chief Financial Officer commented, “Our second quarter financial performance reflects the strength of our business model and the incredible dedication of our independent operators and employees. While we are not providing formal 2020 earnings guidance at this time due to the uncertainty related to COVID-19, our liquidity position is strong and we are actively reinvesting in support of our long-term strategic objectives.”

• Grocery Outlet currently expects to open between 30 and 32 stores this year with no additional closures planned. The Company continues to build its real estate pipeline to support 10% annual unit growth.
• Quarter-to-date comparable store sales growth is tracking at approximately 10% driven by an increase in average basket size partially offset by declines in store traffic. The Company anticipates that comparable store sales growth will continue to moderate as the economy reopens.
• Excluding the impact of discrete items, the Company anticipates a normalized tax rate of 28%.
• Weighted average diluted share count is expected to be approximately 100 million shares for fiscal 2020.

For earnings history and earnings-related data on Grocery Outlet Holding Corp. (GO) click here.