Natural Grocers Sales Grow in Q2

Second quarter sales at Natural Grocers by Vitamin Cottage were up driven in part by increases in transaction counts along with growth in the number of items per transaction.

For the quarter that ended March 31, net sales were $308.1, million, an 8.8% increase over the second quarter of the prior fiscal year. Comparable store sales were up $21.1 million with new store sales accounting for an additional $5.2 million increase. Both were partially offset by a $1.5 million decrease in net sales related to store closures.

Daily average comparable store sales increased 7.5% in the second quarter of fiscal 2024, comprised of a 3.9% increase in daily average transaction size and a 3.5% increase in daily average transaction count. The increase in net sales was driven by increases in transaction counts, items per transaction, retail prices, and new store sales. Marketing initiatives, including the (N)power rewards program offers and market-specific campaigns, enhanced customer engagement, and also contributed to sales growth.

Net income for the second quarter of fiscal 2024 was $8 million, or $0.35 diluted earnings per share, compared to net income of $5.9 million, or $0.26 diluted earnings per share, for the second quarter of fiscal 2023.

“Our sales momentum reflects our effective engagement with our loyal and resilient customer base that prioritizes products with health and sustainability attributes,” said Kemper Isely, Natural Grocers’ co-president. “We believe that our high product quality standards, emphasis on value and always affordable prices, customer service, and convenient shopping experience continue to resonate with consumers to make us a leading destination for natural and organic products in our communities."

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During the first six months of fiscal 2024, net sales increased 8.2% to $609.8 million due to a $38.4 million increase in comparable store sales and a $10.6 million increase in new store sales. The increases were partially offset by a $2.9 million decrease in sales related to closed stores. 

Daily average comparable store sales increased 6.9% in the first six months of fiscal 2024 and was comprised of a 3.4% increase in daily average transaction count and a 3.3% increase in daily average transaction size.

Net income for the first six months of fiscal 2024 was $15.7 million, or $0.68 diluted earnings per share, compared to net income of $10.3 million, or $0.45 diluted earnings per share, for the first six months of fiscal 2023.