GO Lawsuit Alleges Concealment of Deteriorating Business Performance Metrics - Grocery Outlet Holding Corp. Investors Face Losses Following a 27.9% Single-Day Stock Price Drop: SueWallSt

Key Dates and Disclosure Events Shareholders Need to Know

NEW YORK, March 26, 2026 /PRNewswire/ -- SueWallSt encourages investors who suffered losses in Grocery Outlet Holding Corp. (NASDAQ: GO) to contact the firm. Those who purchased GO securities between August 5, 2025 and March 4, 2026 may be entitled to recover damages. Find out if you are eligible to recover losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (888) SueWallSt.

Grocery Outlet shares lost $2.45 per share, a 27.9% single-day decline, closing at $6.34 on March 5, 2026, after a series of events that the lawsuit contends concealed a deteriorating business trajectory. The window to apply for lead plaintiff closes on May 15, 2026.

August 5, 2025: Q2 Results and Reaffirmed Guidance

Grocery Outlet reported Q2 fiscal 2025 results, touting a 4.5% net sales increase to $1.18 billion and the opening of 11 new stores. The Company declared its Restructuring Plan "substantially completed" and reaffirmed full-year guidance, including net sales of $4.7 billion to $4.8 billion and comparable store sales growth of 1.0% to 2.0%. The action contends these representations omitted that the Company's growth was being artificially fueled by unsustainable store expansion.

November 4, 2025: Q3 Results and Quietly Narrowed Guidance

Third quarter results showed net sales up 5.4% to $1.17 billion with 13 new stores opened. However, as alleged, management quietly narrowed full-year guidance:

• Net sales: narrowed from $4.7B-$4.8B to $4.70B-$4.72B
• Comparable store sales: cut from 1.0%-2.0% to 0.6%-0.9%
• Adjusted EBITDA: reduced from $260M-$270M to $258M-$262M
• Diluted adjusted EPS: range shifted to $0.78-$0.80

The lawsuit chronicles that even these narrowed and largely reduced targets proved unachievable, raising questions about what was known internally when the revised figures were issued.

March 4, 2026: The Corrective Disclosure

After the market closed, Grocery Outlet revealed Q4 and full-year 2025 results that missed even the narrowed guidance on virtually every metric. The Company simultaneously disclosed the closure of 36 financially underperforming stores, $110 million in non-cash impairment charges on long-lived assets, $149 million in goodwill impairment, and an entirely new "Optimization Plan" layered on top of the purportedly completed Restructuring Plan. Estimated fiscal 2026 restructuring charges of $14 million to $25 million were also announced.

March 5, 2026: The Market Reacts

GO shares fell 27.9% on unusually heavy volume as the market absorbed the scope of concealed deterioration.

"Timely disclosure of material developments is fundamental to fair and efficient markets. The chronology here raises questions about whether narrowing guidance incrementally masked a far larger problem that was already apparent internally," said Joseph E. Levi, Esq.

Submit your claim before the deadline or contact Joseph E. Levi, Esq. at (212) 363-7500.

ABOUT THE FIRM -- For over two decades, Levi & Korsinsky has represented shareholders in securities class actions. Ranked in ISS Top 50 for seven consecutive years. Those wishing to serve as lead plaintiff must act by May 15, 2026.

CONTACT:
SueWallSt
Joseph E. Levi, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (888) SueWallSt
Fax: (212) 363-7171

SOURCE SueWallSt.com