Shares of grocery chain Grocery Outlet (GO) - Get Grocery Outlet Holding Corp. Report were up nearly 10% Wednesday after the company reported strong quarterly results in its first financial release since it went public.
The Emeryville, Calif.-based company reported second-quarter adjusted earnings of 20 cents a share on revenue of $645.3 million, a 12% year-over-year increase. Analysts polled by FactSet were expecting the company to report earnings of 13 cents a share on revenue of $627 million.
For the full year, the company said it expects earnings of between 68 cents and 71 cents a share on revenue between $2.5 billion and $2.53 billion. Analysts are expecting the company to report earnings of 59 cents on revenue of $2.51 billion.
"We are pleased with our second quarter financial performance which reflects consistent comparable sales growth, strong new store performance and gross margin expansion. Our comparable store sales growth was broad-based across product categories, regions, and store vintages," said CEO Eric Lindberg. "We attribute the consistency of our performance to our unique business model that provides customers unbeatable value in a fun, treasure hunt experience along with great customer service through our local independent operators."
Grocery Outlet debuted in June at $22 a share. The stock was up 9.45% to $41.15 on Wednesday.