Core Insights - Natural Grocers, founded in 1955, has been a reliable source for organic and natural groceries since opening its Wichita location in 2015, emphasizing its commitment to quality and community [1][5]. Group 1: Company Overview - Natural Grocers operates as a specialty retailer of natural and organic groceries, body care products, and dietary supplements, with strict quality guidelines excluding artificial ingredients [5]. - The company has 168 stores across 21 states and is headquartered in Lakewood, CO [5]. - In fiscal year 2024, Natural Grocers invested over $15 million in employee compensation and discretionary payments, reflecting its commitment to its workforce [5]. Group 2: Anniversary Celebration - The company is celebrating its decade in the Wichita Maize community with a weekend of savings and special offers for customers [2]. - Exclusive deals for {N}power members include surprise offers and $10 deals on select products from February 21 to 23 [3][4]. - Customers can join the {N}power rewards program for free to access these anniversary deals [4].

Group 1 - The core viewpoint is that Natural Grocers by Vitamin Cottage (NYSE: NGVC) is successfully executing a sustainable business growth strategy, which is positively received by investors despite its seemingly unexciting nature [1] - The shares of Natural Grocers have continued to perform exceptionally well, indicating strong investor confidence and market performance [1]

Core Points - Natural Grocers is hosting its first annual Celebrate Arizona event from February 14-16, 2025, at all 11 locations in Arizona to honor Arizona Statehood Day [1][2] - {N}power members will receive a free reusable tote bag and a $5 off coupon for in-store purchases during the event [1][8] - The company has been operating in Arizona since 2012, emphasizing its commitment to local communities and high-quality organic products [3][4] Company Overview - Founded in 1955, Natural Grocers by Vitamin Cottage, Inc. is a specialty retailer of natural and organic groceries, body care products, and dietary supplements [7] - The company operates 168 stores across 21 states, adhering to strict quality guidelines for its products [10] - Natural Grocers is committed to its Five Founding Principles, including a strong focus on community and employee welfare, having invested over $15 million in employee compensation in fiscal year 2024 [10]

Core Insights - Natural Grocers is promoting budget-friendly Valentine's Day deals, offering discounts of up to 43% on select products, encouraging customers to purchase gifts and meal ingredients [1][5] - The company is providing a free chocolate bar to {N}power members on Valentine's Day, enhancing customer loyalty and engagement [2][9] - Natural Grocers is emphasizing homemade meal options for Valentine's Day, with healthy meal ideas starting at under $20 for two people [3] - The company is celebrating Crew Appreciation Month in February, offering exclusive discounts and donating 1% of Valentine's Day sales to support employees facing economic hardships [4] - Post-Valentine's Day, Natural Grocers will continue to offer discounts until February 22, 2025, across various product categories [5] Company Overview - Natural Grocers by Vitamin Cottage, Inc. is a specialty retailer of natural and organic groceries, founded in 1955, with a commitment to quality and community [7] - The company operates 168 stores across 21 states, focusing on affordable prices and a clean shopping environment [7] - In fiscal year 2024, Natural Grocers invested over $15 million in employee compensation and discretionary payments, reflecting its commitment to its workforce [7]

Financial Data and Key Metrics Changes - For Q1 2025, net sales increased by 9.4% year-over-year to $330.2 million, with daily average comparable store sales rising by 8.9% and 15.1% on a two-year basis [18][21] - Diluted earnings per share increased by 26.5% to $0.43, while net income rose by 28.1% to $9.9 million [22] - Adjusted EBITDA increased by 21.7% to $22.8 million, reflecting strong operating leverage [23] Business Line Data and Key Metrics Changes - Sales growth was broad-based across product categories, with dairy, meat, and produce being the strongest performing departments [20] - Natural Grocers brand products accounted for 8.9% of total sales, up from 8.5% a year ago, aided by the launch of 23 new items [12] Market Data and Key Metrics Changes - The company reported eight consecutive quarters of positive transaction count comps and four consecutive quarters with increases in items per basket [9][11] - The penetration of the NPower Rewards program reached 81%, up from 78% a year ago, indicating strong customer loyalty [11] Company Strategy and Development Direction - The company plans to open four to six new stores and relocate or remodel two to four stores during fiscal 2025, with a focus on store unit growth and development [13][24] - The company aims to align with consumer trends prioritizing health and sustainability, which is expected to drive future growth [10][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business trends and execution, leading to an increase in fiscal 2025 guidance for daily average comparable store sales growth and diluted earnings per share [24][25] - The company anticipates modest inflation throughout the year and expects year-over-year gross margin to remain relatively flat [26] Other Important Information - The company ended the first quarter with a strong liquidity position, including $6.3 million in cash and cash equivalents [23] - The company is committed to offering high-quality, affordable products while maintaining a focus on environmental and social impact [15][16] Q&A Session Summary Question: What are the offsets for gross margin remaining relatively flat? - Management noted that while there was a 50 basis point improvement in gross margin, future benefits from store occupancy leverage may diminish due to strong prior year comps and uncertainty regarding tariffs [31][32] Question: What is the outlook for free cash flow? - Management indicated that free cash flow movements were timing-driven, primarily related to accounts payable and the timing of payments for goods and services [36] Question: Why is the operating margin not higher compared to competitors? - Management explained that while sales expansion should lead to margin improvement, the focus on affordable pricing may limit margin growth compared to competitors [40][41] Question: Could the company open more than the planned four to six stores? - Management stated that while the current focus is on four to six stores for this year, they hope to increase that to six to eight stores in the following year [43] Question: Is there an increased focus on healthy eating benefiting the industry? - Management agreed that there is likely to be an increased focus on healthy eating, which would benefit the industry [48][49]

Core Insights - Natural Grocers by Vitamin Cottage, Inc. reported strong first quarter results for fiscal 2025, with significant growth in sales and earnings, leading to an increased outlook for the fiscal year [2][13]. Financial Performance - Net sales increased by $28.5 million, or 9.4%, to $330.2 million compared to the first quarter of fiscal 2024, driven by a $26.7 million increase in comparable store sales and a $2.9 million increase in new store sales [3][6]. - Daily average comparable store sales rose by 8.9% in the first quarter, with a two-year growth of 15.1%, supported by a 5.3% increase in transaction count and a 3.4% increase in transaction size [3][6]. - Net income increased by 28.1% to $9.9 million, with diluted earnings per share of $0.43, compared to $7.8 million and $0.34 per share in the prior year [8][6]. Gross and Operating Margins - Gross profit increased by $10.1 million, or 11.3%, to $98.8 million, with a gross margin improvement of 50 basis points to 29.9% [4][6]. - Operating income rose by 23.6% to $13.3 million, with an operating margin of 4.0%, up from 3.6% in the previous year [8][6]. Expense Management - Store expenses increased by 8.1% to $73.5 million, primarily due to higher compensation expenses, but as a percentage of net sales, they decreased to 22.3% from 22.5% [5][6]. - Administrative expenses rose by 22.4% to $11.5 million, influenced by higher compensation and technology expenses, with administrative expenses as a percentage of net sales increasing to 3.5% from 3.1% [7][6]. Cash Flow and Capital Expenditures - The company generated $2.7 million in cash from operations and invested $9.4 million in net capital expenditures during the first quarter [10][6]. - As of December 31, 2024, the company had $6.3 million in cash and cash equivalents, with $8.9 million in outstanding borrowings on its revolving credit facility [10][6]. Growth Strategy - The company relocated two stores during the first quarter and ended with 167 stores across 21 states, with one new store opened since December 31, 2024 [12][6]. - The updated fiscal 2025 outlook includes expectations for daily average comparable store sales growth of 5.0% to 7.0% and diluted earnings per share of $1.57 to $1.65 [13][6]. Dividend Announcement - The company declared a quarterly cash dividend of $0.12 per common share, payable on March 19, 2025, to stockholders of record on March 3, 2025 [11][6].

Exhibit 99.1 Natural Grocers by Vitamin Cottage Announces First Quarter Fiscal 2025 Results Raises Fiscal 2025 Outlook Lakewood, Colorado, February 6, 2025. Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) today announced results for its first quarter of fiscal 2025 ended December 31, 2024. Highlights for First Quarter Fiscal 2025 Compared to First Quarter Fiscal 2024 "We are very pleased with the strong start to our fiscal year 2025. Our first quarter results saw accelerating growth and a continuation ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q Table of Contents ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER: 001-35608 Natural Grocers by Vitamin Cottage, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or ...

Join the celebration with giveaways, special savings, a sweepstakes, free samples and more!LAKEWOOD, Colo., Feb. 5, 2025 /PRNewswire/ -- Natural Grocers®, the leading family-operated organic and natural grocery retailer in the U.S., is thrilled to announce the opening of its newest store in Waco, TX, on Wednesday, February 19, 2025. Located at 601 N. Valley Mills Drive, Waco, TX 76710, this will be Natural Grocers' 25th store in Texas. Community members are invited to join the celebration with special givea ...

Snag up to 44% off party-pleasing essentials Feb. 6-9, 2025LAKEWOOD, Colo., Feb. 5, 2025 /PRNewswire/ -- Natural Grocers®, the nation's leading family-operated organic and natural grocery retailer, is gearing up for game day with unbeatable savings on all your must-have snacks and party essentials. Catch Natural Grocers 'Big Game Specials' Feb. 6-9, 2025. With up to 44% off Natural Grocers’ Always Affordable Prices, customers can win with big savings. And speaking of winning, one lucky customer will win ...