Grocery Outlet Holding Corp. saw its net sales drop 3% to $782.7 million in the fourth quarter of fiscal 2021, the company reported after markets closed on March 1.
Additionally, the Emeryville, Calif.-based value retailer reported that fourth-quarter mockup sales fell 1.2% year-over-year. This compares to model year-over-year sales growth of 7.9% in the last quarter of 2020.Net income for the fourth quarter of 2021 fell 72.6% to $6.6 million, or 7 cents per diluted share.
Net sales for fiscal 2021, covering 53 weeks, fell 1.8% to $3.08 billion. On a 52-week basis, same-store sales fell 6%, compared to a 12.7% gain a year ago.
Despite the slips, Grocery Outlet CEO Eric Lindberg said the company “delivered better than expected revenue and gross margin performance.”
“Thanks to the tireless efforts of our independent operators, as well as our unique and flexible buying model, we continue to deliver unbeatable value and service to our customers and local communities,” Lindberg said. “As we look to the future, we are confident that the strength of our differentiated model combined with our strategic initiatives and a more supportive operating environment positions us well for long-term growth.”
The company opened eight new stores in the fourth quarter and closed the year with 415 stores in seven states.
“We are pleased with the acceleration in revenue trends in the fourth quarter and encouraged to see continued momentum in the first quarter of 2022,” said Chief Financial Officer Charles Bracher. “Looking forward, we remain committed to driving long-term value for our shareholders by continuing to invest in our growth initiatives and providing our customers with the extreme value and WOW! buying experience that is at the heart of our model.”