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Luke D. Thompson, Executive Vice President, General Counsel, and Secretary of Grocery Outlet Holding Corp. (NASDAQ:GO), recently sold 1,133 shares of the company’s common stock. The transaction, which took place on March 10, 2025, was executed at a price of $13.16 per share, amounting to a total of $14,910. The sale occurred as the stock trades near its InvestingPro Fair Value, though shares have declined over 51% in the past year. Following this sale, Thompson retains ownership of 31,167 shares. The shares were sold to cover tax withholding obligations related to the vesting of performance stock units previously granted to Thompson. With a market capitalization of $1.25 billion and a FAIR financial health score, Grocery Outlet maintains solid fundamentals despite recent market challenges. Discover more comprehensive insights and 10 additional key ProTips for GO on InvestingPro.
In other recent news, Grocery Outlet Holding Corp reported its fourth-quarter 2024 earnings, revealing a slight miss on earnings per share (EPS) compared to analyst expectations. The company posted an EPS of $0.15, falling short of the forecasted $0.17, but revenue surpassed expectations, reaching $1.1 billion against a forecasted $1.09 billion. Analysts from Craig-Hallum, Telsey Advisory Group, and DA Davidson have adjusted their price targets for Grocery Outlet, citing ongoing profitability concerns and operational challenges. Craig-Hallum reduced its price target to $13.50, while Telsey lowered it to $16.00, and DA Davidson adjusted it to $15.00, with all firms maintaining a Hold or Neutral rating.
Grocery Outlet is facing several challenges, including higher shrinkage due to system integration issues and increased selling, general, and administrative expenses. The company’s restructuring plan, which includes store closures and lease exits, is expected to negatively affect profitability in the short term. Despite these challenges, Grocery Outlet experienced a 2.9% increase in comparable store sales, surpassing some analyst forecasts. The company has also outlined plans for 33-35 net new store openings in 2025, focusing on existing and adjacent markets to improve store sales productivity.
The leadership at Grocery Outlet remains focused on addressing operational inefficiencies and optimizing inventory management, with new tools being implemented to enhance productivity. Analysts have noted the strategic decision to slow down expansion, which may impact the company’s growth algorithm and earnings in the near term. The company’s management anticipates that the ongoing initiatives will enhance unit economics and long-term returns once fully implemented.
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