Grocery Outlet Holding Corp. (NASDAQ:GO) shares jumped 16.41% to $9.01 in after-hours trading on Wednesday after the California-based discount grocer reported first-quarter results where earnings per share beat analyst estimates by 150%.
Results In Line With Guidance
Grocery Outlet’s net sales for the first quarter ended Apr. 4 rose 3.6% to $1.17 billion, topping analyst estimates by 1.36%, driven by new store openings, though comparable-store sales fell 1.0%. Gross margin contracted 80 basis points to 29.6%, including a 50-bps hit from inventory markdowns tied to store closures.
Adjusted net income came in at $4.6 million, or $0.05 per diluted share, beating the analyst estimate of $0.02 by 150%.
The GAAP net loss widened to $180.3 million, or $1.83 loss per diluted share, inflated primarily by a $158 million non-cash goodwill …