Grocery Outlet Holding Stock Falls As Q2 Earnings Miss Estimates

Grocery Outlet Holding Corp GO reported a second-quarter FY21 sales decline of 3.5% year-on-year, to $775.535 million, marginally below the analyst consensus of $775.55 million.
Comparable store sales decreased by 10.0% in the quarter, versus a 16.7% growth last year.
Gross profit fell 6.3% Y/Y to $237.8 million with a profit margin of 30.7%, a decrease of 90 basis points.
The operating margin was 3.1%, and operating income for the quarter declined 26.8% Y/Y to $23.7 million.
Adjusted EBITDA decreased 15.7% Y/Y to $50.8 million.
Adjusted EPS of $0.23 missed the analyst consensus of $0.24.
Grocery Outlet held $126.6 million in cash and equivalents as of July 3, 2021. Net cash provided by operating activities for the six months amounted to $85.1 million.
Outlook: Grocery Outlet expects comparable store sales for Q3 FY21 to be in the negative mid-single digits.
Price Action: GO shares are trading lower by 3.01% at $30.00 in premarket on the last check Wednesday.