Natural Grocers Reports Strong Q1 Growth
First quarter sales at Natural Grocers were up more than 9% as company officials said the grocer’s value proposition continues to resonate with shoppers.
For the quarter ended December 31, net sales were $330.2 million, an increase of 9.4% over the comparable quarter the prior fiscal year. The growth was driven by a $26.7 million increase in comparable store sales and a $2.9 million increase in new store sales, partially offset by a $1.1 million decrease in net sales related to closed stores.
Daily average comparable store sales increased 8.9% in the first quarter of fiscal 2025, comprised of a 5.3% increase in daily average transaction count and a 3.4% increase in daily average transaction size.
Growth of Natural Grocers’ private label products along with its {N}power rewards program were cited as factors in the quarter gains.
Net income for the first quarter of fiscal 2025 was $9.9 million, or $0.43 diluted earnings per share, compared to net income of $7.8 million, or $0.34 diluted earnings per share, for the first quarter of fiscal 2024.
“Our first quarter results saw accelerating growth and a continuation of the positive trends we experienced over the past two years, including broad-based growth across categories and geographic regions,” said Kemper Isely, co-president of Natural Grocers. “Natural Grocers' differentiated offering of carefully vetted natural and organic products and compelling value proposition continues to resonate with consumers' increasing prioritization of products that support health and sustainability."
Based on the strong start to fiscal 2025, coupled with confidence in its business trends and execution, Natural Grocers is increasing its fiscal 2025 outlook for daily average comparable store sales growth and diluted earnings per share.
The company is now forecasting daily average comparable store sales growth of between 5% to 7% with diluted earnings per share of between $1.57 and $1.65. Natural Grocers will also open between four and six new stores while relocating/remodeling two to four stores.
“We believe Natural Grocers is well aligned with consumer and product category tailwinds, helping to fuel our momentum and putting us in a strong position for the remainder of the fiscal year,” Isely said.
