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Dec 31, 2019
Natural Grocers Q1 2020 Earnings Report
Reported a net sales increase driven by comparable store sales and new store sales.
Key Takeaways
Natural Grocers announced a 3.8% increase in net sales to $230.0 million for the first quarter of fiscal year 2020. The company's operating income was $2.8 million, and net income reached $1.9 million, resulting in diluted earnings per share of $0.08.
Net sales increased 3.8% to $230.0 million.
Daily average comparable store sales increased 1.9%.
Operating income was $2.8 million.
Net income was $1.9 million with diluted earnings per share of $0.08.
Natural Grocers
Natural Grocers
Forward Guidance
For fiscal year 2020, Natural Grocers expects to open 5-6 new stores and relocate 1-2 stores. They project daily average comparable store sales growth between 0.5% and 2.5%, with net income as a percentage of sales ranging from 0.9% to 1.1%. Diluted earnings per share are anticipated to be between $0.37 and $0.45, and capital expenditures are estimated to be between $28 and $33 million.
Positive Outlook
- Number of new stores: 5-6
- Number of relocations: 1-2
- Daily average comparable store sales growth: 0.5% to 2.5%
- Net income as a percentage of sales: 0.9% to 1.1%
- Capital expenditures (in millions): $28 to $33
Challenges Ahead
- The adoption of the new lease accounting standard effective October 1, 2019 is expected to result in incremental occupancy expense
- The adoption of the new lease accounting standard effective October 1, 2019 is expected to negatively impact diluted earnings per share by $0.01 to $0.02 for fiscal 2020.
- The company's effective income tax rate for the first quarter of fiscal 2020 was 19.2% compared to 21.0% for the first quarter of 2019.
- Gross margin decreased to 26.3% for the three months ended December 31, 2019 compared to 26.7% for the three months ended December 31, 2018.
- Operating income decreased 29.4% to $2.8 million during the first quarter of fiscal 2020 compared to the comparable period in fiscal 2019.