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Natural Grocers Q2 2025 Earnings Report
Natural Grocers reported a strong second quarter for fiscal year 2025, with significant increases in net sales, net income, and comparable store sales.
Key Takeaways
Natural Grocers by Vitamin Cottage, Inc. announced robust financial results for the three months ended March 31, 2025, demonstrating substantial growth across key metrics. Net sales increased by 9.0% to $335.8 million, driven by strong comparable store sales and new store contributions. Net income saw a remarkable 64.6% increase, reaching $13.1 million, while diluted EPS rose to $0.56. The company's gross profit also improved, reflecting effective promotions.
Net sales increased by 9.0% to $335.8 million for the three months ended March 31, 2025, compared to $308.1 million in the prior year.
Net income surged by 64.6% to $13.1 million for the quarter, up from $8.0 million in the same period last year.
Daily average comparable store sales grew by 8.9%, attributed to a 5.9% increase in daily average transaction count and a 2.8% increase in daily average transaction size.
Gross profit increased by 12.6% to $101.7 million, with gross margin improving to 30.3% due to higher product margin from effective promotions.
Natural Grocers
Natural Grocers
Natural Grocers Revenue by Segment
Revenue by Segment
Grocery Revenue
CapyFin.comDietary supplements Revenue
CapyFin.comBody care, pet care and other Revenue
CapyFin.comComparable Store Sales Revenue
CapyFin.comNew Store Sales Revenue
CapyFin.comClosed Stores Revenue
CapyFin.com Forward Guidance
Natural Grocers plans to continue its expansion by opening new stores and relocating/remodeling existing ones, leveraging its strong financial position and market opportunities. The company anticipates continued growth in the natural and organic foods industry, but acknowledges potential impacts from economic conditions and competitive pressures.
Positive Outlook
- Plans to open three to four new stores and relocate/remodel two to four existing stores in fiscal year 2025.
- Believes cash and cash equivalents, along with borrowing availability under the Credit Facility, will be sufficient to meet working capital needs and planned capital expenditures for the next 12 months.
- Anticipates continued growth opportunities in the natural and organic grocery and dietary supplements industry.
- Focuses on providing nutrition education and high-quality, affordably priced products to differentiate itself in the market.
- Expects to continue to expand its store base and increase comparable store sales.
Challenges Ahead
- Future sales growth and profitability could vary due to increasing competitive conditions in the natural and organic grocery and dietary supplement industries.
- Subject to global, national, regional, or local political, economic, inflationary, deflationary, recessionary, business, interest rate, labor market, competitive, market, regulatory, trade policy and other factors beyond control.
- Labor market challenges, including the ability to retain and attract store Crew members, may require increased wages in the future.
- Potential for supply chain disruptions, geopolitical instability, and increased shipping/transportation costs could impact product availability and costs.
- The imposition of additional tariffs and trade restrictions could lead to higher procurement costs and adversely affect competitive position if not offset.
Revenue & Expenses
Visualization of income flow from segment revenue to net income