Why Grocery Outlet Holding's Stock Is Trading Lower Today

Grocery Outlet Holding Corp GO is trading lower Wednesday morning after the company issued weak guidance. 

What Happened: Grocery Outlet Holding announces first-quarter financial results on Tuesday after the close. The company announced earnings of 23 cents per share, which beat the estimate of 22 cents per share. It reported revenue of $752.5 million, which came in below the estimate of $757.63 million.

The company issued guidance in which it expects comparable-store sales in the second quarter to be in the negative low double digits.

Related Link: Grocery Outlet Holding: Q1 Earnings Insights

"While it remains difficult to forecast the near term environment, we remain bullish for the future and continue to expand our footprint and invest in the business to deliver on our long-term algorithm," said Charles Bracher, CFO of Grocery Outlet Holding.

Deutsche Bank downgraded Grocery Outlet Holding from Buy to Hold and announced a $37 price target.

Price Action: Grocery Outlet Holding traded as high as $48.67 and as low as $31.81 over a 52-week period. The stock was down 13.4% in premarket trading at $35.10.