Grocery Outlet Holding Corp. Sees Net Sales, Comp Sales Slide in Q4

Grocery Outlet Holding Corp. saw net sales dip 3% to $782.7 million in the fourth quarter of fiscal 2021, the company reported after markets closed on March 1.

In addition, the Emeryville, Calif.-based value retailer reported that fourth-quarter comp sales fell 1.2% year over year. That compares with year-over-year comp sales growth of 7.9% in 2020's final quarter. Net income in the fourth quarter of 2021 fell 72.6% to $6.6 million, or 7 cents per diluted share.

Fiscal 2021 net sales, covering 53 weeks, decreased by 1.8% to $3.08 billion. On a 52-week basis, comparable-store sales slid 6%, compared with a 12.7% gain a year ago.

Despite the slides, Grocery Outlet CEO Eric Lindberg said the company "delivered better-than-expected topline and gross margin performance."

"Through the tireless efforts of our independent operators, along with our unique and flexible buying model, we continue to deliver unbeatable value and service to our customers and local communities," Lindberg said. "As we look forward, we are confident that the strength of our differentiated model combined with our strategic initiatives and a more favorable operating environment position us well for long-term growth."

The company opened eight new stores in the fourth quarter and closed out the year with 415 stores in seven states.

"We are pleased with the acceleration in topline trends in the fourth quarter and  encouraged to see continued momentum into the first quarter of 2022," said CFO Charles Bracher. "Looking ahead, we remain committed to driving long-term shareholder value by continuing to invest in our growth initiatives and providing our customers with the extreme value and WOW! shopping experience that is core to our model."