Grocery Outlet adds two new directors to board as part of growth plan

EMERYVILLE, Calif. - Grocery Outlet Holding Corp. (NASDAQ:GO), currently valued at $1.2 billion with shares trading at $12.66, appointed Michael Kobayashi and Lawrence "Chip" Molloy to its Board of Directors effective Thursday, as part of the discount retailer’s board refreshment efforts. According to InvestingPro analysis, the company is currently trading near its Fair Value.

The company also announced that directors Kenneth Alterman and Thomas Herman will retire effective August 7, 2025. With these changes, the board temporarily expands from 10 to 12 directors before returning to 10 members after the retirements, with eight being independent.

Kobayashi and Molloy will both serve on the Board’s Audit and Risk Committee. The appointments followed a national search conducted with assistance from a search firm.

Kobayashi brings over 20 years of retail leadership experience, primarily from Ross Stores, Inc., where he held several executive positions including President and Chief Capability Officer. His background includes expertise in retail technology, supply chain, and store operations.

Molloy most recently served as Chief Financial Officer of Sprouts Farmers Market, Inc. His experience includes roles as Interim CEO at Torrid Holdings Inc. and CFO positions at Under Armour, Inc. and PetSmart LLC. He currently serves on multiple public company boards including Sally Beauty Holdings, Pet Valu Holdings Ltd., and BRC Inc.

"The changes to our Board reflect our commitment to periodic board refreshment and our continued focus on executing our growth plan and enhancing shareholder value," said Eric Lindberg, Chairman of Grocery Outlet’s Board of Directors, in a press release statement.

Based in Emeryville, California, Grocery Outlet operates more than 540 independently operated stores across 16 states, specializing in discounted name-brand consumables and fresh products. The company generated $4.46 billion in revenue over the last twelve months, with a gross profit margin of 30.5%. For deeper insights into Grocery Outlet’s financial health and growth prospects, including additional ProTips and comprehensive analysis, visit InvestingPro.

In other recent news, Grocery Outlet Holding Corp reported its first quarter 2025 earnings, surpassing expectations with earnings per share (EPS) of $0.13, compared to the forecasted $0.07. The company achieved a revenue of $1.13 billion, slightly above the anticipated $1.12 billion, reflecting an 8.5% year-over-year increase. Jefferies maintained its Buy rating on Grocery Outlet, with a price target of $20.00, highlighting strong customer traffic and a gross margin that exceeded consensus estimates. However, DA Davidson raised its price target from $15.00 to $17.00 while keeping a Neutral rating, citing progress in the company’s execution but noting some market share loss. The firm also pointed out that comparable store sales were below market expectations, despite being ahead of the company’s guidance. Grocery Outlet’s management has adjusted its comparable sales forecast for the year, citing smaller average transaction sizes and economic trends as influencing factors. The company plans to open 33-35 new stores in 2025, aiming to enhance its market presence and performance.

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