Core Insights - Natural Grocers has been a reliable source for organic and natural groceries in Fargo since its opening on June 7, 2015, and is committed to its Five Founding Principles [1][5] - The company celebrates its 10-year milestone in Fargo, emphasizing its dedication to health and wellness, community support, and customer service [2] Company Overview - Founded in 1955, Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) specializes in natural and organic groceries, body care products, and dietary supplements, with strict quality guidelines for its products [5] - The company operates 169 stores across 21 states and is headquartered in Lakewood, CO [5] Customer Engagement - Natural Grocers offers a free member rewards program called {N}power, which includes limited-time anniversary deals for members [3][4] - Customers can sign up for {N}power through various methods, including scanning a QR code in-store or using the Natural Grocers App [4] Financial Commitment - In fiscal year 2024, Natural Grocers invested over $15 million in incremental compensation and discretionary payments for its employees, reflecting its commitment to its "Commitment to Crew" principle [5]

Core Insights - Natural Grocers has launched five new organic private-label cheeses, including three cheese blocks and two other varieties, all made with California milk and adhering to pasture-based dairy standards [1][2] - The company emphasizes its commitment to sustainability, with 87% of water used in cheesemaking being cleaned and reused, and packaging that uses 20% less plastic [2] - The new cheese products are part of a broader portfolio expansion, which now includes over 800 Natural Grocers Brand Products, with more premium products expected soon [4] Product Details - The new cheese offerings include Organic Havarti, Mild Cheddar, Medium Cheddar blocks, Medium Cheddar slices, and Sharp Cheddar shreds, priced between $4.99 and $6.49 [6] - All new cheese products are certified organic, non-GMO, gluten-free, and made with natural sea salt [6] Company Overview - Natural Grocers, founded in 1955, is a specialty retailer focused on natural and organic groceries, body care products, and dietary supplements, with strict quality guidelines [5][8] - The company operates 169 stores across 21 states and is headquartered in Lakewood, CO, with a commitment to community and crew welfare, investing over $15 million in employee compensation in fiscal year 2024 [8]

Company Performance - Natural Grocers by Vitamin Cottage Inc. experienced a very rewarding fiscal year for shareholders, with the stock price more than doubling [1] - The company achieved consistent revenue growth and margin improvements during the past fiscal year [1] Investment Insights - The investment strategy involves a top-down view of the global economy combined with a bottom-up analysis of individual companies, focusing on strong economies and quality companies with solid momentum [2]

Core Points - Natural Grocers is hosting its second annual Celebrate Idaho event from May 17-19, offering {N}power members a free state-themed reusable shopping bag and a $5-off coupon for in-store purchases [1][2][8] - The company has been serving Idaho since 2012 and has expanded to six locations, emphasizing its commitment to high-quality products at affordable prices [4][10] - Natural Grocers employs nearly 140 local good4uSM Crew members in Idaho and is dedicated to their well-being through various support programs [6][10] Company Overview - Natural Grocers by Vitamin Cottage, Inc. was founded in 1955 and operates as a specialty retailer of natural and organic groceries, body care products, and dietary supplements [8][10] - The company has 169 stores across 21 states and is headquartered in Lakewood, Colorado [10] - Natural Grocers adheres to strict quality guidelines, ensuring products are free from artificial ingredients and only sell USDA-certified organic produce [10] Customer Engagement - The {N}power customer rewards program allows members to access exclusive discounts and personalized offers, enhancing customer loyalty [3][12] - The Celebrate Idaho event aims to strengthen community ties and promote healthy living among Idaho residents [5][10]

Core Insights - Natural Grocers is enhancing its household cleaning product standards to reflect scientific understanding of ingredient impacts on health and the environment [1][2] Group 1: Updated Standards - The updated list of prohibited ingredients now exceeds 100, including previously banned substances like phosphates and synthetic fragrances [2] - Full ingredient disclosure is mandated for all brands sold by Natural Grocers, ensuring transparency beyond federal regulations [2] Group 2: Commitment to Health and Environment - The company emphasizes that cleaning products should not compromise health or environmental safety, aiming to provide safe and sustainable choices for consumers [3] - Natural Grocers prioritizes ethically sourced and sustainably produced products, including eco-friendly packaging made from recycled or plant-derived materials [4] Group 3: Company Overview - Founded in 1955, Natural Grocers operates 169 stores across 21 states, focusing on natural and organic groceries, body care products, and dietary supplements [5] - The company adheres to strict quality guidelines, ensuring products are free from artificial additives and only sell USDA-certified organic produce [5] - In fiscal year 2024, Natural Grocers invested over $15 million in employee compensation and benefits, reflecting its commitment to community and staff [5]

Core Insights - Natural Grocers, founded in 1955, has been a reliable source for organic and natural groceries in Wheat Ridge, CO since 2015, emphasizing quality and affordability [1][5] - The company celebrates its 10th anniversary in Wheat Ridge, highlighting its commitment to community and healthy living [2] Company Overview - Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) specializes in natural and organic groceries, body care products, and dietary supplements, adhering to strict quality guidelines [5] - The company operates 169 stores across 21 states, with a focus on providing USDA-certified organic produce and pasture-raised dairy products [5] - Natural Grocers invests over $15 million in fiscal year 2024 for Crew compensation and discretionary payments, reflecting its commitment to its employees [5] Customer Engagement - The {N}power rewards program offers limited-time anniversary deals for members, including surprise offers and special pricing from May 16-18 [3][4] - Customers can join the {N}power program for free through various methods, including in-store QR codes and the Natural Grocers App [4] Promotional Offers - Specific promotional deals include 2 for $10 on select products like Natural Grocers® Brand Bulk Almond Butter and Organic Beef Jerky, and 6 for $10 on Organic Sparkling Teas [8]

Natural Grocers by Vitamin Cottage (NGVC) Q2 2025 Earnings Call May 08, 2025 04:30 PM ET Company Participants Jessica Thiessen - Vice President & TreasurerKemper Isely - Chairman, Director & Co-PresidentRichard Hallé - CFO Conference Call Participants None - Analyst Operator Good day, ladies and gentlemen. Welcome to the Natural Grocers Second Quarter Fiscal Year twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. Later, we will conduct a question and answe ...

Financial Data and Key Metrics Changes - For the second quarter, net sales increased by 9% year-over-year to $335.8 million [14] - Daily average comparable store sales rose by 8.9%, with a two-year increase of 16.4% [14] - Operating income increased by 55.9% to $17.6 million, and net income rose by 64.6% to $13.1 million [15] - Diluted earnings per share increased by 60% to $0.56, and adjusted EBITDA grew by 33.3% to $26.3 million [15] Business Line Data and Key Metrics Changes - Sales performance was strong across product categories, particularly in differentiated offerings such as humanely raised meats, 100% organic produce, and pasture-raised dairy [9] - Natural Grocers brand products accounted for 8.6% of total sales, up from 8.5% a year ago, driven by the launch of 22 new items [11] Market Data and Key Metrics Changes - Daily average comparable transaction count increased by 5.9%, and transaction size increased by 2.8%, with modest inflation estimated at 2% annually [14] - The company reported a gross margin increase of 100 basis points to 30.3%, attributed to higher product margins from effective promotions [15] Company Strategy and Development Direction - The company plans to open three to four new stores and relocate or remodel two to four stores during fiscal 2025, with a long-term goal of six to eight new stores per year [12][17] - Focus on enhancing customer engagement through the nPower Rewards program and expanding the selection of Natural Grocers brand products [10] Management's Comments on Operating Environment and Future Outlook - Management noted no indicators of softer demand for products, trade down, or fewer items per basket despite broader macroeconomic uncertainties [8] - The company is raising its fiscal 2025 outlook for daily average comparable store sales growth and diluted earnings per share based on strong second-quarter results [16][17] Other Important Information - The net sales penetration of the Empower Rewards program increased to 81%, reflecting positive trends in customer loyalty [11] - The company ended the quarter with $21.2 million in cash and cash equivalents, no outstanding borrowings, and $70.3 million available on its revolving credit facility [16] Q&A Session Summary Question: What perks and promotions are offered in the loyalty program? - The company offers individualized offers tailored to shopping habits, earning points in-store that equate to a 1% rebate, and exclusive deals for members [21][22] Question: Has the basket size decreased due to the economy? - The company reported that basket size has remained steady over the last several quarters [23] Question: Are there plans to expand into other markets? - The company is planning to enter another state, with an announcement expected in the coming months [24] Question: How are inventory and distribution levels? - Inventory levels are back to pre-pandemic levels, running at about 97% in stock [25] Question: Is delivery offered in-house or through a third party? - Delivery is provided through Instacart, and the company does not plan to bring it in-house due to profitability concerns [28] Question: Are there trends in the age demographic of customers? - The company has seen an increase in millennial customers, attracted by its authentic messaging [30]

Exhibit 99.1 Operating Results — Second Quarter Fiscal 2025 Compared to Second Quarter Fiscal 2024 Net sales during the second quarter of fiscal 2025 increased $27.7 million, or 9.0%, to $335.8 million, compared to the second quarter of fiscal 2024, due to a $27.2 million increase in comparable store sales and a $3.5 million increase in new store sales, partially offset by a $2.9 million decrease in net sales related to closed stores. Daily average comparable store sales increased 8.9% in the second quarter ...

Core Viewpoint - Natural Grocers by Vitamin Cottage, Inc. reported exceptional second quarter results for fiscal 2025, with record sales and earnings, leading to an increased fiscal outlook for the year [2][19]. Financial Performance - Net sales for the second quarter of fiscal 2025 increased by $27.7 million, or 9.0%, reaching $335.8 million compared to the same quarter in fiscal 2024 [3][8]. - Daily average comparable store sales rose by 8.9%, driven by a 5.9% increase in transaction count and a 2.8% increase in transaction size [3][8]. - Gross profit for the second quarter increased by $11.4 million, or 12.6%, to $101.7 million, with a gross margin improvement of 100 basis points to 30.3% [4][11]. - Operating income surged by 55.9% to $17.6 million, with an operating margin of 5.2%, up from 3.7% in the prior year [7][14]. - Net income increased by 64.6% to $13.1 million, translating to diluted earnings per share of $0.56, compared to $0.35 in the same quarter of fiscal 2024 [7][8]. Cost Management - Store expenses rose by 5.1% to $72.8 million, but as a percentage of net sales, they decreased to 21.7% from 22.5% in the previous year, indicating expense leverage [5][12]. - Administrative expenses increased by 15.8% to $11.0 million, with a slight rise in percentage of net sales to 3.3% from 3.1% [6][13]. Growth and Development - The company opened two new stores during the second quarter, bringing the total to 169 stores across 21 states [18][22]. - The fiscal 2025 outlook has been raised, with expected daily average comparable store sales growth adjusted to 6.5% to 7.5% and diluted earnings per share revised to $1.78 to $1.86 [19][20]. Cash Flow and Balance Sheet - As of March 31, 2025, the company had $21.2 million in cash and cash equivalents, with no outstanding borrowings on its revolving credit facility [16][28]. - The company generated $36.7 million in cash from operations during the first six months of fiscal 2025 [16][30].