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Natural Grocers by Vitamin tage(NGVC) - 2025 Q3 - Earnings Call Transcript
2025-08-07 21:30
Financial Data and Key Metrics Changes - Third quarter net sales increased by 6.3% year-over-year to $328.7 million, with daily average comparable store sales rising by 7.4% [11] - Operating income grew by 21.3% to $15.6 million, while net income increased by 26% to $11.6 million [13] - Diluted earnings per share rose by 25% to $0.50, and adjusted EBITDA increased by 10.1% to $24.4 million [13] Business Line Data and Key Metrics Changes - Daily average comparable transaction count increased by 4.8%, and transaction size grew by 2.4%, primarily due to modest product cost inflation [12] - Net sales penetration of the Empower Rewards program reached 82%, up from 80% a year ago, indicating improved customer loyalty [8] Market Data and Key Metrics Changes - Sales performance was strong across geographies and product categories, particularly in differentiated offerings like meat, dairy, and produce [6] - The company faced a temporary disruption in product distribution due to a cybersecurity incident with its primary distributor, UNFI, which adversely impacted net sales by approximately $3.5 million to $4 million [7] Company Strategy and Development Direction - The company plans to accelerate store unit growth, aiming to open six to eight new stores in fiscal 2026, with five future new stores already signed and negotiations ongoing for another five sites [9][10] - The revised outlook includes two new store openings and three store relocations or remodels, with capital expenditures projected between $30 million and $33 million [14] Management's Comments on Operating Environment and Future Outlook - Management has not observed any indicators of softer demand or trade down in consumer behavior despite monitoring trends closely [12] - The company remains focused on enhancing customer engagement through the Empower Rewards program and expanding its selection of Natural Grocers brand products [14] Other Important Information - The company ended the third quarter with $13.2 million in cash and cash equivalents, no outstanding borrowings, and $69.5 million available on its revolving credit facility [13] - The company celebrated its 70th anniversary, encouraging community engagement during the anniversary period [18] Q&A Session Summary - No questions were raised during the Q&A session, leading to a conclusion of the call [16]