KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Key Financial Highlights
- Q4 adjusted EPS: $0.15 (missed estimates of $0.17)
- Revenue: $1.098 billion (beat expectations of $1.086 billion)
- 2025 Guidance:
- Adjusted EPS: $0.70-$0.75 (below analyst estimate of $0.94)
- Revenue: $4.7B-$4.8B (vs. analyst forecast of $4.73B)
Restructuring Plan & Job Cuts
- Company announced job cuts, canceled warehouse projects, and terminated leases for stores in "suboptimal" locations.
- The goal is to streamline operations and position the company for long-term growth.
Market Reaction
- Stock plunged 13.3% after hours to $13.65 as investors reacted to the earnings miss and cautious outlook.
CEO's Take
- Chairman Eric Lindberg emphasized that despite setbacks, the company is focused on key strategic initiativesto strengthen its foundation and support future growth.
Summary:
- Q4 EPS miss and weak 2025 guidance triggered a 10%+ drop in Grocery Outlet stock.
- Restructuring efforts include job cuts and canceled store expansions to optimize operations.
- Investors remain cautious as management adjusts its growth strategy.
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