Natural Grocers Sees Sales, Comps Rise in Q2 2023

Natural and organic grocery chain Natural Grocers has shared its fiscal results for Q2 ended March 31, which saw net sales and comparable store sales increase.

During the second quarter of fiscal 2023, net sales increased $11.4 million year-over-year, or 4.2%, to $283.2 million. Comparable store sales increased $7.4 million and new store sales increased $4.9 million. Daily average comparable store sales increased 2.7% in the second quarter of fiscal 2023, consisting of a 2.7% increase in daily average transaction count with no change in daily average transaction size. 

Gross profit during the second quarter of fiscal 2023 increased $5.7 million, or 7.4%, to $82.5 million, compared to $76.8 million in the second quarter of fiscal 2022. Gross margin increased 90 basis points year-over-year to 29.1% during the second quarter of fiscal 2023, compared to 28.2% in the second quarter of fiscal 2022.

"We are pleased with our second quarter results. An increase in customer traffic drove the 2.7% increase in comparable store sales, which was ahead of expectations and is prompting us to raise our comparable store sales guidance for the year,” said Kemper Isley, co-president of Natural Grocers. “On a two-year basis, daily average comparable store sales were up 7.0%, including a 4.5% increase in transaction count. Our diluted earnings per share for the second quarter was $0.26 including a $0.03 per share impairment charge related to a store closure, and compares to $0.28 in the same period last year. During the quarter we made the decision to close two underperforming stores as part of our ongoing efforts to drive higher store productivity."

Looking ahead to the remainder of fiscal 2023, Natural Grocers expects to open four to six new stores, and relocate/remodel two to three stores. Founded in 1955, has 166 stores in 21 states.