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- **Revenue Growth**: Q3 net sales up 5.4% to $1.17 billion, driven by 11 new stores and 1.2% comp growth.
- **Store Refresh Success**: Pilot stores achieved mid-single-digit lifts; 150+ stores to be refreshed in 2026.
- **Adjusted Guidance**: 2025 same-store sales 0.6-0.9%, adjusted EBITDA $258-262 million.
- **SNAP Risk**: 9% of sales tied to SNAP; potential disruption not factored into guidance.
- **Strategic Focus**: Scaling store refresh, improving IO tools, and localizing assortments for 2026 growth.

**【CEO Summary Section】**
- Q3 2025 net sales reached $1.17 billion, up 5.4% YoY, with comparable store sales growth of 1.2%. New store openings contributed 11 net stores.
- Launched store refresh pilot program, achieving mid-single-digit comp lifts in 2 pilot stores. Plans to expand to 20 stores by year-end and 150+ in 2026.
- Adjusted EBITDA of $67 million (top of guidance) and adjusted EPS of $0.21 (exceeded expectations due to tax benefits).
- Q3 comps underperformed due to promotional timing and marketing mix changes, but weekly comps rebounded post-course correction.
- 2026 strategy includes rolling out refreshed stores in new locations and improving IO tools for better in-stock performance.

**【CFO Financial Commentary】**
- Q3 gross profit $355.1 million (30.4% of net sales), SG&A $331 million (28.3% of net sales), driven by new store growth and software amortization.
- Adjusted 2025 guidance: same-store sales 0.6-0.9%, net sales $4.7-4.72 billion, adjusted EBITDA $258-262 million, and adjusted EPS $0.78-0.80.
- 2026 expectations include $9 million EBITDA contribution from 53rd week in 2025 and $10-13 million headwind from cash incentives.

**【Q&A Key Highlights】**
- **Store Refresh Rollout**: 150+ stores in 2026, focusing on clustering and minimal disruption (5-week execution). Pilot stores saw 5%+ lift in meat/produce categories.
- **SNAP Impact**: 9% of sales tied to SNAP; no guidance impact yet, but monitoring potential disruptions.
- **Localization**: Testing region-specific assortments (e.g., Southern California Hispanic-focused) with early positive results.
- **Marketing Strategy**: Course correction in Q4 with sharper focus on wine and opportunistic buys; social media testing ongoing.
- **IO Satisfaction**: Positive feedback on system improvements (order guide functionality) and refresh program ROI (3.5-year payback period).

Grocery Outlet Holding Corp. (GO) Q3 2025 Earnings Call Transcript

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