Natural Grocers up more than 20% in Q2 sales
Stock-up trips and increased shopping during the coronavirus pandemic has fueled yet another retailer's quarterly earnings, Natural Grocers reported a net sales increase of 20.4% for the second quarter, landing at $277.5 million.
The daily average comparable-store sales growth was 17%. “We experienced above-average sales increases in household products, supplements, grocery and bulk,” said Kemper Isely, co-president of Natural Grocers by Vitamin Cottage. “We are one of the few retailers where consumers can still buy bulk products, as we prepackage all bulk at our own bulk processing facility. Our private label brands also performed well.”
Isely added that a significant increase in average basket size could be seen happening in late February continuing through the end of the quarter, driven by pandemic shopping. “The safety of our heroes in masks and aprons and customers has been the driving factor behind every decision we have made over the past several months, and will continue to be throughout this global pandemic,” he said.
The second-quarter report showed an increase in sales of $47.1 million or 20.4% to reach the mark of $277.5 million, compared to the same period a year ago.
The company’s gross profit increased $15.6 million or 25.1% for the three months ended March 31, versus the same period a year ago.
Other highlights included:
- Operating income increased 116.6% to $13.3 million;
- Net income increased 151.8% to $9.7 million with diluted earnings per share of $0.43;
- EBITDA increased 57.7% to $21.1 million;
- The company opened two new stores, resulting in a 3.3% new store growth rate for the 12-month period ended March 31, 2020; and
- The board of directors has extended the company's share repurchase program and declared a quarterly dividend of 7 cents per common share.