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Natural Grocers by Vitamin Cottage Announces First Quarter Fiscal 2026 Results

On February 5, 2026, Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) revealed its financial performance for the first quarter of fiscal 2026, which concluded on December 31, 2025. The report showcased significant sales growth and a boost in net income, reflecting the company’s continued commitment to delivering high-quality natural and organic products.

Key Financial Highlights

During the first quarter, Natural Grocers experienced a 1.6% increase in net sales, totaling $335.6 million. This increase was primarily driven by comparable store sales, which rose by 1.7%. Impressively, on a two-year comparison, comparable store sales surged by 10.6%. The company also reported a net income growth of 14.0%, bringing it to $11.3 million with diluted earnings per share at $0.49. In addition, the adjusted EBITDA rose by 3.1%, totaling $23.5 million.

Co-President Kemper Isely commented on these results, stating, “Our first quarter results were in-line with expectations, and we are affirming our full year outlook. We believe that our differentiated selection of high-quality natural and organic products, enhanced by our Always AffordableSM pricing strategy, continues to deliver strong value and reinforce our competitive position amid economic uncertainty.”

Detailed Analysis

The increase in sales by $5.4 million compared to the same quarter last year can be attributed to a $5.7 million boost in comparable store sales alongside a modest $2.4 million increase from new store sales. However, this was slightly offset by a $2.8 million reduction in sales from closed stores.

The gross profit for this quarter saw a slight increase to $98.9 million, though the gross margin decreased by 40 basis points to 29.5%, primarily due to higher inventory shrink.

Store expenses decreased by 0.7% to $73.0 million owing to rigorous expense management, and as a percentage of net sales, these expenses decreased from 22.3% to 21.8% compared to the first quarter of 2025. Likewise, administrative expenses fell by 5.9% to $10.8 million.

Operating income saw an increase of 9.7%, rising to $14.6 million, while operating margin improved from 4.0% to 4.4%. This positive performance contributed to the company's net income growth, with diluted earnings per share increasing to $0.49.

Future Outlook

Looking ahead, Natural Grocers remains optimistic about its prospects for fiscal 2026. The company projects the opening of 6 to 8 new stores and plans 2 to 3 relocations/remodels. They anticipate daily average comparable store sales growth to be between 1.5% and 4.0%, with diluted earnings per share expected to reach between $2.00 and $2.15.

In terms of capital expenditures, the company estimates it will invest between $50 to $55 million.

Dividend Declaration

In conjunction with the earnings report, Natural Grocers announced a quarterly cash dividend of $0.15 per common share. This dividend is to be paid on March 18, 2026, to shareholders recorded as of March 2, 2026.

Conclusion

Natural Grocers by Vitamin Cottage's strong financial performance in Q1 2026 exemplifies its effective business strategies in navigating prevalent economic uncertainties. The company's commitment to providing quality natural and organic products continues to position it favorably within the grocery retail sector.

For additional insights and updates, stakeholders and interested parties are invited to join their upcoming earnings conference call today at 2:30 p.m. Mountain Time (4:30 p.m. Eastern Time), accessible via dial-in or a live audio webcast.