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Grocery Outlet Shares Jump After Hours on Q1 Beat Despite Big Impairment

The upside surprise could prompt a rethink of March price-target cuts.

Overview

  • Shares rose more than 16% after hours as the discount grocer topped Wall Street’s first-quarter estimates.
  • Adjusted earnings were $0.05 per share versus the $0.02 consensus, and net sales reached $1.17 billion.
  • Revenue grew 3.6% as new store openings added sales, while comparable-store sales fell 1.0%.
  • A $158 million non-cash goodwill impairment produced a GAAP net loss of $180.3 million, or $1.83 per share.
  • The report follows March downgrades and sharp price-target cuts from DA Davidson, Wells Fargo, Telsey, Morgan Stanley, and Jefferies after a weak Q4 and lower FY26 sales outlook.