Why Grocery Outlet Shares Popped Over 12% Wednesday Morning

Shares of Grocery Outlet Holding Corp. (NASDAQ: GO), an extreme value retailer of groceries and consumables with 330 stores across six states, are bucking today's overall market downturn and popped as high as 12.5% Wednesday morning after the company released its first quarterly result since going public.

Net sales increased 12.2% to $645.3 million during the second quarter, driven partially by 5.8% growth in comparable store sales, which topped analysts' revenue estimates of $627 million. Adjusted earnings checked in at $14.5 million, or $0.20 per share, which was better than the prior year's $0.19 per share result and much better than analysts' estimates of $0.13 per share.

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Source Fool.com