Grocery Outlet posts $180M loss on $158M goodwill impairment, closes 36 stores amid tariffs

Filed May 13, 2026 · Period ending April 4, 2026 · ~2 min read

Key Changes

• high

  Company recorded $158M non-cash goodwill impairment after fair value fell below carrying amount, driving Q1 net loss to $180M ($1.83/share) vs $23M loss ($0.24/share) prior year despite 3.6% sales growth to $1.17B.

  MD&A: Goodwill Impairment verify on EDGAR →
• high

  Board approved closure of 36 underperforming stores with $20-27M restructuring charges expected through fiscal 2027; 27 stores closed in Q1, remaining 9 in Q2. Company plans 30-33 net new stores in clustered markets.

  MD&A: Optimization Plan verify on EDGAR →
• high

  Comparable store sales declined 1.0% as average transaction size fell 3.1%, partially offset by 2.1% transaction count increase. Gross margin compressed 80 basis points to 29.6%, with 50 bps from store closure markdowns.

  MD&A: Comparable Sales & Margins verify on EDGAR →