GROCERY OUTLET HOLDING Reports Strong Earnings for Q2 of FY2023
August 29, 2023
☀️Earnings Overview
Grocery Outlet Holding ($NASDAQ:GO) released their second quarter results of FY2023, which ended on June 30 2023. The total revenue earned was USD 1010.3 million, a year-over-year rise of 12.5%. The net income was USD 24.5 million, displaying a 21.8% growth from the year prior.
Share Price
On Tuesday, GROCERY OUTLET HOLDING reported strong earnings for its second quarter of fiscal year 2023. The company’s stock opened at $33.2 and closed at $33.1, down by 0.2% from the prior closing price of 33.2. Despite the slight decline in market value, investors remain positive about the company’s outlook due to its impressive financial performance in the quarter. This figure was bolstered further by a 10% year-over-year increase in revenue. The company also saw improvements in both gross margins and same-store sales over the same period last year. The company’s strong performance comes as a result of its focus on modernizing its stores and expanding its customer base.
GROCERY OUTLET HOLDING has been expanding its presence in the online space, making investments in digital capabilities such as e-commerce and delivery services. The company has also been rolling out new products and services, such as the loyalty program, which is expected to drive customer loyalty and help to boost revenue further in the coming quarters. Overall, GROCERY OUTLET HOLDING reported solid results for the second quarter of fiscal year 2023, and investors remain bullish on its outlook. The company’s focus on digital capabilities and new customer initiatives is expected to provide a major boost to its performance in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for GO. More…
| Total Revenues | Net Income | Net Margin |
| 3.82k | 71.58 | 2.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for GO. More…
| Operations | Investing | Financing |
| 257.9 | -162.64 | -91.96 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for GO. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.82k | 1.66k | 11.79 |
Key Ratios Snapshot
Some of the financial key ratios for GO are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.0% | 9.4% | 3.0% |
| FCF Margin | ROE | ROA |
| 2.5% | 6.3% | 2.6% |
Analysis
At GoodWhale, we have analyzed GROCERY OUTLET HOLDING’s financials and have come to an important conclusion: GROCERY OUTLET HOLDING has been classified as a ‘gorilla’ type of company due to its strong competitive advantage, leading to its stable and high revenue or earning growth. This type of company is likely to be of interest to certain types of investors. In terms of its financial performance, GROCERY OUTLET HOLDING is strong in terms of growth, medium in profitability and weak in terms of assets and dividend. However, despite the relatively weak asset and dividend performance, our analysis of GROCERY OUTLET HOLDING’s cashflows and debt has led to a health score of 8/10, indicating that the company is capable of sustaining future operations in times of crisis. More…
Peers
The company was founded in 1946 and is headquartered in Emeryville, California. Grocery Outlet Holding Corp operates through two segments: Grocery Outlet and Bargain Market. The Grocery Outlet segment offers a variety of food and household products at discounts of up to 50% off traditional grocery store prices. The Bargain Market segment offers a selection of closeout, overstocked, and irregular merchandise at discounts of up to 70% off traditional retail prices. The company competes with Veroni Brands Corp, The Kroger Co, and Ollie’s Bargain Outlet Holdings Inc.
– Veroni Brands Corp ($OTCPK:VONI)
As of 2022, Veroni Brands Corp has a market cap of 47.4M. The company’s return on equity is 98.41%. Veroni Brands Corp is a food and beverage company that manufactures and markets a variety of food and beverage products. The company’s products include pasta, sauces, snacks, and desserts. Veroni Brands Corp is headquartered in New York, New York.
– The Kroger Co ($NYSE:KR)
The Kroger Co has a market cap of 33.33B as of 2022, a Return on Equity of 23.61%. The company is a leading grocery store chain in the United States with over 2,800 stores in 35 states. The company offers a wide variety of products and services including grocery, health and beauty, and general merchandise. Kroger also has a strong online presence with a website and mobile app that offer convenient shopping options for customers.
– Ollie’s Bargain Outlet Holdings Inc ($NASDAQ:OLLI)
Ollie’s Bargain Outlet Holdings Inc is a publicly traded company with a market cap of 3.37B as of 2022. The company operates a chain of closeout retail stores in the United States. As of February 2021, the company operated 259 stores in 27 states. The company was founded in 1982 and is headquartered in Harrisburg, Pennsylvania.
Summary
GROCERY OUTLET HOLDING has seen impressive growth in both revenue and net income for the second quarter of FY2023. Revenue increased by 12.5% to USD 1010.3 million, while net income grew 21.8% to USD 24.5 million. This indicates strong organic growth and indicates that the company may be a good investment opportunity.
Additionally, it appears that the company is executing its strategies successfully and is well-positioned for future growth. Investors should keep an eye on GROCERY OUTLET HOLDING as it may be an attractive opportunity.
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