Emeryville, California-based Grocery Outlet Holding Corp. has reported its financial results for the third quarter of fiscal 2019 ended Sept. 28.
Net sales for the retailer increased by 13.1 percent to $652.5 million from $576.8 million in the third quarter of fiscal 2018; and comparable store sales increased by 5.8 percent over a 4.2 percent increase in the same period last year.
The company opened eight new stores and closed one, ending the quarter with 337 stores in six states. Net income was $12.4 million, compared to net income of $7.7 million in the third quarter of fiscal 2018.
Eric Lindberg, CEO of Grocery Outlet, said, “We were pleased with our third quarter performance, as customers continued to respond to the unbeatable values and treasure hunt experience delivered by local independent operators. The increase in comparable store sales was once again attributable to broad-based strength across product categories, regions and vintages, while new stores continued to perform well. In addition, we made strategic enhancements in our business to support our long-term growth objectives.”
Lindberg said, “We look forward to driving continued comparable sales growth by providing our customers deep value and a unique treasure hunt shopping experience. We remain committed to reinvesting in our business to support our network of independent operators, optimize and expand our supplier base, and drive brand awareness and engagement. We are excited about the opportunities ahead, as we maintain our focus on delivering measured and consistent growth while building the business for long-term success.”
For the 39 weeks ended Sept. 28, net sales increased by 11.8 to $1.9 billion from $1.7 billion in the same period in 2018; and comparable store sales increased by 5.3 percent over a 3.8 percent increase in the same period in 2018.
Grocery Outlet ended the third quarter of fiscal 2019 with $462.5 million in total debt, compared to $709.1 million at the end of the same period in 2018. The decline was due to the prepayment of debt in the second quarter of fiscal 2019.