Natural Grocers by Vitamin Cottage Announces First Quarter Fiscal 2026 Results

Core Insights - Natural Grocers by Vitamin Cottage, Inc. reported first quarter results for fiscal 2026, affirming its full-year outlook amid economic uncertainty [2][4]. Financial Performance - Net sales increased by $5.4 million, or 1.6%, to $335.6 million compared to the first quarter of fiscal 2025, driven by a $5.7 million increase in comparable store sales and a $2.4 million increase in new store sales [4][11]. - Daily average comparable store sales rose by 1.7%, with a 1.0% increase in daily average transaction count and a 0.7% increase in daily average transaction size [4]. - Gross profit slightly increased to $98.9 million, but gross margin decreased by 40 basis points to 29.5% due to lower product margins from higher inventory shrink [5]. - Operating income increased by 9.7% to $14.6 million, with an operating margin of 4.4%, up from 4.0% in the prior year [8]. - Net income rose by 14.0% to $11.3 million, translating to diluted earnings per share of $0.49, compared to $0.43 in the same quarter last year [8][11]. - Adjusted EBITDA increased by 3.1% to $23.5 million, with an Adjusted EBITDA margin of 7.0% [9][29]. Cost Management - Store expenses decreased by 0.7% to $73.0 million, with store expenses as a percentage of net sales dropping to 21.8% from 22.3% [6]. - Administrative expenses fell by 5.9% to $10.8 million, with a decrease in percentage of net sales from 3.5% to 3.2% [7]. Cash Flow and Capital Expenditures - The company generated $21.1 million in cash from operations and invested $9.6 million in net capital expenditures during the first three months of fiscal 2026 [12]. - As of December 31, 2025, the company had $23.2 million in cash and cash equivalents, with no outstanding borrowings on its $70.0 million revolving credit facility [10]. Future Outlook - The company is affirming its fiscal 2026 outlook, projecting 6 to 8 new stores, 2 to 3 relocations/remodels, daily average comparable store sales growth of 1.5% to 4.0%, diluted earnings per share of $2.00 to $2.15, and capital expenditures of $50 to $55 million [14].