Grocery Outlet 2025 Q3 Earnings EPS Plummets 52% Despite 5.4% Revenue Growth

Grocery Outlet (GO), ranked by market capitalization, reported its fiscal 2025 Q3 earnings on Nov 6, 2025. The company delivered mixed results, . Guidance was adjusted downward for revenue and EBITDA, while EPS expectations were slightly raised, reflecting divergent performance across key metrics.

Revenue

, driven by store expansion and improved sales at existing locations. Perishable goods contributed $440.99 million, . The combined net sales reflect a 5.4% year-over-year increase, .

Earnings/Net Income

, a 52% decline from $24.18 million in the prior-year period. This was mirrored by a 52% drop in EPS to $0.12, . The sharp contraction in profitability highlights challenges in maintaining margins amid rising operational costs and competitive pressures.

Post-Earnings Price Action Review

Following the earnings release, Grocery Outlet’s stock experienced volatile trading. Shares surged 3.74% on the day of the report but fell sharply in subsequent sessions, dropping 9.14% during the week and 19.17% month-to-date. The mixed earnings performance—strong revenue growth paired with weak profitability—sparked uncertainty among investors, leading to divergent short-term market reactions. Analysts attributed the decline to concerns over margin compression and the company’s guidance adjustments, which signaled ongoing operational challenges.

Additional News

Recent analyst activity highlighted shifting sentiment toward Grocery Outlet. Telsey Advisory Group lowered its price target to $17.00 from $20.00 while maintaining an “outperform” rating, citing optimism about the company’s strategic initiatives. Zacks Research upgraded the stock to “strong-buy,” and Craig Hallum moved to a “buy” rating with a $17.00 target, reflecting growing confidence in long-term potential. Meanwhile, insider transactions revealed the sale of 20,000 shares by Executive Vice President Steven K. Wilson, raising questions about executive sentiment.

CEO Commentary

, President and CEO of Grocery Outlet, emphasized progress in key initiatives during the earnings call, including the launch of a store refresh program at pilot locations. He acknowledged the need to address margin pressures and highlighted efforts to enhance the customer experience as critical to driving future growth.

Guidance

Grocery Outlet updated its FY 2025 guidance, projecting EPS of $0.78–$0.80 (midpoint $0.79) and revenue of $4.71 billion (midpoint), slightly below previous estimates. The revised outlook reflects cautious optimism, balancing recent operational strides with ongoing challenges in the competitive retail landscape.

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