Latest news with #JasonPotter
Yahoo
20-05-2025
- Business
- Yahoo
GO Q1 Earnings Call: Management Cites Execution Initiatives Amid Flat Same-Store Sales
Discount grocery store chain Grocery Outlet (NASDAQ:GO) met Wall Street's revenue expectations in Q1 CY2025, with sales up 8.5% year on year to $1.13 billion. The company's outlook for the full year was close to analysts' estimates with revenue guided to $4.75 billion at the midpoint. Its non-GAAP profit of $0.13 per share was 87.6% above analysts' consensus estimates. Is now the time to buy GO? Find out in our full research report (it's free). Revenue: $1.13 billion vs analyst estimates of $1.12 billion (8.5% year-on-year growth, in line) Adjusted EPS: $0.13 vs analyst estimates of $0.07 (87.6% beat) Adjusted EBITDA: $51.89 million vs analyst estimates of $48.8 million (4.6% margin, 6.3% beat) The company reconfirmed its revenue guidance for the full year of $4.75 billion at the midpoint Management reiterated its full-year Adjusted EPS guidance of $0.73 at the midpoint EBITDA guidance for the full year is $265 million at the midpoint, below analyst estimates of $268.2 million Operating Margin: -2%, down from 0.1% in the same quarter last year Free Cash Flow was -$1.51 million compared to -$38.43 million in the same quarter last year Locations: 543 at quarter end, up from 474 in the same quarter last year Same-Store Sales were flat year on year (3.9% in the same quarter last year) Market Capitalization: $1.39 billion Grocery Outlet's first quarter was shaped by steady store expansion and improvements in inventory management, which management identified as key drivers of performance. CEO Jason Potter highlighted that the company's focus on new store openings, enhanced supply chain systems, and improvements in shrink (inventory loss) supported an 8.5% rise in sales. Potter also noted that the rollout of a real-time order guide and stronger supplier relationships have started to improve inventory visibility and product assortment, although same-store sales remained flat year over year due to softer average basket sizes. Looking ahead, management's forward guidance rests on executing several initiatives aimed at driving basket size and operational efficiency. CFO Chris Miller pointed to cost containment efforts and ongoing investments in store experience as central to delivering on full-year profitability targets. Management acknowledged macroeconomic uncertainty, with Potter stating, 'We are moderating our outlook for annual comp store sales growth, reflecting current trends in the business as well as uncertainty given the macroeconomic environment.' The company plans to continue prioritizing gross margin improvement and disciplined capital allocation while adapting to changing consumer behavior. Management focused on operational improvements and strategic initiatives to address both short-term challenges and long-term growth potential. Inventory management progress: The rollout of a real-time order guide system in key regions improved inventory visibility for independent operators, leading to higher fill rates and more efficient product replenishment. This initiative is expected to help match supply with demand more effectively. Store expansion and clustering: Grocery Outlet opened 10 net new stores during the quarter and is piloting a more data-driven approach to real estate selection. The company is clustering new stores in markets with high brand awareness to enhance returns and is testing lower capital expenditure formats to address inflationary pressures. Leadership transitions: The company announced the upcoming retirements of its Chief Operations Officer and Chief Store Officer, with a new Chief Information Officer already playing a key role in systems integration. Management is also searching for additional merchandising and supply chain leadership talent to strengthen execution. Cost efficiency initiatives: A company-wide program targeting indirect procurement—such as freight, supplies, and IT expenses—was launched to improve profitability. Supply chain consolidation, including the reduction from five to one distribution center in the Pacific Northwest, aims to drive efficiency gains. Product mix and private label focus: Management emphasized a stronger mix of opportunistic products (items acquired at a discount for resale) and private label offerings to improve margins. Efforts to improve the quality of fresh produce and everyday essentials are designed to encourage larger customer baskets and repeat visits. Management's outlook for the coming quarters centers on driving same-store sales growth and margin expansion through operational execution and commercial initiatives. Store performance optimization: Management is piloting new commercial execution strategies and clustering store openings in established markets, aiming to improve returns on invested capital and support sustainable expansion. Basket size improvement: Initiatives targeting in-stock levels, assortment enhancements, and fresh product quality are expected to help increase the average number of items per customer transaction, a key factor for comparable sales growth. Cost and supply chain discipline: Ongoing programs in indirect procurement and supply chain consolidation are intended to offset inflationary pressures and contribute to margin improvement. However, management cautioned that macroeconomic uncertainty and consumer behavior shifts could affect top-line momentum. Anthony Bonadio (Wells Fargo): Asked about the company's strategic direction under new leadership. CEO Jason Potter reiterated a focus on execution, brand strength, and building operational capabilities to drive long-term performance. Corey Tarlowe (Jefferies): Inquired about the drivers behind the updated comp store sales outlook. Management cited softer average basket sizes and macro uncertainty, but expects sequential improvement as commercial initiatives ramp up. Robbie Ohmes (Bank of America): Sought details on the impact of the real-time order guide. Management reported improved fill rates and positive operator feedback but noted that sales impact would materialize over time as execution improves. Michael Baker (D.A. Davidson): Queried about the April sales trend and price competitiveness. Management acknowledged a softer start to April and emphasized the importance of maintaining tight pricing relative to competitors. Anthony Chukumba (Loop Capital Markets): Asked about the scope of cost reduction efforts. CFO Chris Miller highlighted indirect procurement and supply chain consolidation as key areas, noting a disciplined and methodical approach to cost savings. In the coming quarters, the StockStory team will be monitoring (1) the rollout and effectiveness of the real-time order guide system across all regions, (2) the progress of new store clustering and lower CapEx pilots in enhancing returns and customer experience, and (3) execution of cost efficiency initiatives, particularly supply chain consolidation. We will also watch for any inflection in same-store sales as assortment and merchandising efforts gain traction. Grocery Outlet currently trades at a forward P/E ratio of 18×. In the wake of earnings, is it a buy or sell? See for yourself in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Yahoo
09-05-2025
- Business
- Yahoo
Grocery Outlet opens 11 new stores in Q1
You can find original article here Supermarketnews. Subscribe to our free daily Supermarketnews newsletter. Grocery Outlet is making headway in its restructuring laid out in the fourth quarter, opening a net 10 new stores in Q1 and achieving nearly a third of its plan for 33 to 35 new locations by the end of the year. The grocery chain ended the first quarter with 543 stores across 16 states. Newly appointed CEO, Jason Potter, who previously served as CEO of The Fresh Market and joined Grocery Outlet in late January, said the grocery retailer also delivered on its first quarter outlook for its established stores with comparable store sales up 0.3% from 2024. 'These stores are off to a solid start, performing ahead of expectations. We also exceed our gross margin outlook by improving our shrink run rate through improved inventory, visibility, reporting, and execution,' he said. Potter said he kicked off the quarter with a tour of more than 50 stores and dozens of the chain's suppliers. 'I've listened, gained valuable and candid feedback and learned more about what matters to all of them,' he said in the earnings call on Tuesday. Potter said he remains 'bullish' on the grocery retailer's ability to improve costs and margin while growing. 'As I've said, I believe with the right focus and execution, this business can be much larger and much more profitable in the future. Achieving our potential, however, requires that focused execution,' he said. He said the company has set four strategic imperatives to achieve its goals: Tackling new store performance to drive long-term growth and strengthen returns on invested capital Securing top talent to activate the strategy Addressing execution gaps by continuing to make progress on systems to improve performance Improving the ability to execute at scale by strengthening leadership, opportunistic buying, and becoming a leading selling organization that delivers a winning customer experience The turnaround effort follows a difficult period for Grocery Outlet over the last year. '2024 was a year in which many critical operational elements were out of sync, which was further exacerbated by trying to do too much, too fast. But we're working urgently to get back on track,' Grocery Outlet Chairman Eric Lindberg said in February. Grocery Outlet reported that net sales rose 8.5% year over year for the quarter. Meanwhile, gross margin improved to 30.4% from 29.3% the previous year. Adjusted net income reached $13 million, or $0.13 per diluted adjusted share, up from $8.8 million, or $0.09 per diluted adjusted share, last year. Adjusted EBITDA increased by 31.7% to $51.9 million, representing 4.6% of net sales. Grocery Outlet also announced the departures of Ramesh Chikkala, EVP, chief operations officer, who is retiring this June, and Pamela Burke, EVP, chief stores officer, who will retire later this year. 'Pam has led a number of functions and forged strong relationships with our IOs during her decade with the company. Ramesh has helped stabilize and build leadership teams to drive systems improvements, while also strengthening our supply chain,' Potter said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-04-2025
- Business
- Yahoo
Wingspire Equipment Finance Provides Over $20 Million in Equipment Financing to Leading Aviation Services Provider
TUSTIN, Calif., April 23, 2025--(BUSINESS WIRE)--Wingspire Equipment Finance is pleased to provide over $20 million in equipment financing for a global leader in aviation services. The funding will support upgrading the private equity-owned company's operational equipment. This will enhance its ability to meet increasing market demand and service new customer contracts. As one of the world's largest providers of airport ground services and air cargo handling, the client plays a critical role in supporting airlines and airports internationally. The company sought a financing partner capable of providing a pre-approved guidance CapEx Line of Credit, ensuring quick and efficient funding for equipment acquisition. Wingspire Equipment Finance structured an Equipment Finance Agreement (EFA) that enables the company to replace aging cargo and ramp handling equipment, aircraft cleaning machinery, and plane fueling service vehicles. The funding modernizes its existing fleet and allows for strategic expansion to support growing customer needs. "Our financing solution represents a pivotal step forward for our client in the aviation services industry," said Jason Potter, Senior Vice President of Business Development at Wingspire Equipment Finance. "With a CapEx Line of Credit established, we've provided the flexibility they need to acquire and deploy new aviation equipment quickly. Our ability to scale with their business was key to their decision to partner with us. We're proud to support their growth and look forward to continuing our relationship." For more information about Wingspire Equipment Finance and its comprehensive finance solutions, please visit About Wingspire Equipment Finance: Wingspire Equipment Finance is a leading provider of equipment financing solutions, committed to empowering middle market companies with flexible and innovative financial solutions. With a focus on client success and industry expertise, Wingspire Equipment Finance is dedicated to delivering strategic capital solutions that drive long-term success for its clients. Wingspire Equipment Finance is the equipment financing arm of Wingspire Capital, a portfolio company of Blue Owl Capital (NYSE: OWL), a global alternative asset manager with over $251B in AUM. View source version on Contacts For media inquiries, please contact:Media Relations844.816.9420pressinfo@ Sign in to access your portfolio
Business Wire
23-04-2025
- Business
- Business Wire
Wingspire Equipment Finance Provides Over $20 Million in Equipment Financing to Leading Aviation Services Provider
TUSTIN, Calif.--(BUSINESS WIRE)--Wingspire Equipment Finance is pleased to provide over $20 million in equipment financing for a global leader in aviation services. The funding will support upgrading the private equity-owned company's operational equipment. This will enhance its ability to meet increasing market demand and service new customer contracts. As one of the world's largest providers of airport ground services and air cargo handling, the client plays a critical role in supporting airlines and airports internationally. The company sought a financing partner capable of providing a pre-approved guidance CapEx Line of Credit, ensuring quick and efficient funding for equipment acquisition. Wingspire Equipment Finance structured an Equipment Finance Agreement (EFA) that enables the company to replace aging cargo and ramp handling equipment, aircraft cleaning machinery, and plane fueling service vehicles. The funding modernizes its existing fleet and allows for strategic expansion to support growing customer needs. 'Our financing solution represents a pivotal step forward for our client in the aviation services industry,' said Jason Potter, Senior Vice President of Business Development at Wingspire Equipment Finance. 'With a CapEx Line of Credit established, we've provided the flexibility they need to acquire and deploy new aviation equipment quickly. Our ability to scale with their business was key to their decision to partner with us. We're proud to support their growth and look forward to continuing our relationship.' For more information about Wingspire Equipment Finance and its comprehensive finance solutions, please visit About Wingspire Equipment Finance: Wingspire Equipment Finance is a leading provider of equipment financing solutions, committed to empowering middle market companies with flexible and innovative financial solutions. With a focus on client success and industry expertise, Wingspire Equipment Finance is dedicated to delivering strategic capital solutions that drive long-term success for its clients. Wingspire Equipment Finance is the equipment financing arm of Wingspire Capital, a portfolio company of Blue Owl Capital (NYSE: OWL), a global alternative asset manager with over $251B in AUM.
Yahoo
16-04-2025
- Business
- Yahoo
Grocery Outlet (GO) Shares Skyrocket, What You Need To Know
Shares of discount grocery store chain Grocery Outlet (NASDAQ:GO) jumped 7.1% in the morning session after Jefferies upgraded the stock's rating from Neutral to Buy. The firm added, "We upgrade GO to BUY, given our view that the company's defensive positioning as a low-price grocer could drive outperformance during periods of economic uncertainty." Is now the time to buy Grocery Outlet? Access our full analysis report here, it's free. Grocery Outlet's shares are very volatile and have had 26 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was about 2 months ago when the stock dropped 29.3% on the news that the company reported weak fourth-quarter 2024 results: its EPS, EBITDA, and full-year guidance for both metrics missed. Revenue narrowly topped Wall Street estimates. However, gross margin contracted due to higher inventory shrinkage from system conversion issues. Looking ahead, full-year guidance pointed to low-double-digit EBITDA growth, but margins remained under pressure, and restructuring costs could weigh on near-term profitability. The company recently appointed Jason Potter as its new CEO, bringing over 30 years of industry experience. His leadership would be closely watched as Grocery Outlet works to strengthen its operations and drive long-term growth. Overall, this quarter had some bright spots in revenue growth, but profitability challenges and a soft outlook made it a tough period for investors. Grocery Outlet is down 9.3% since the beginning of the year, and at $14.79 per share, it is trading 46.1% below its 52-week high of $27.44 from April 2024. Investors who bought $1,000 worth of Grocery Outlet's shares 5 years ago would now be looking at an investment worth $424.98. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Sign in to access your portfolio
