Grocery Outlet Holding Corp. (NASDAQ:GO) Q1 2024 Earnings Call Transcript

Simeon Gutman: Right. And RJ, knowing be some time to recover, but you mentioned the buying fundamentals are healthy. The prior several quarters we saw a step-up in gross margin from the prior run rate to that. I know you were asked this earlier, where did the gross margin settle out? Does it settle out to where we were running in 2023, or does it settle out to the pre-’23 run rate before we had the system issues?

RJ Sheedy: Yes. When you look at our guidance, you’ll see in the back half of the year, it’s in between, which is to say the beginning of 2023 in the second quarter, in particular last year was really a historical high point for us. We talked about that at the time. So we do expect margin in the second half to be at a nice healthy rate, again to increase sequentially from the number that we’ve guided to in the second quarter and then increasing from there at a healthy rate and above historical averages. That’s not at the same level that it was in the second quarter. Again that was particularly high and the highest we’ve seen in a really, really long time.

Simeon Gutman: Thank you.

RJ Sheedy: Thanks, Simeon.

Operator: Thank you. At this time, I would like to turn the call back to management for closing comments.

RJ Sheedy: Thanks, everyone, for joining us, and we look forward to talking with you again on the next call. Thanks and take care.

Operator: Thank you. This does conclude today’s teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a great day.