Natural Grocers Starts Fiscal 2023 With Sales Gains

Colorado-based Natural Grocers has shared results from its first quarter of fiscal 2023, in which net sales and comparable store sales grew marginally for the organic and natural retailer.

For the period ended Dec. 31, 2022, Natural Grocers’ net sales increased by 1.1% compared to the same period in fiscal 2022, hitting $280.5 million. Daily average comparable store sales increased 0.5% year-over-year, and increased 17.6% on a three-year basis. Net income was $4.4 million, with diluted earnings per share of $0.19.

"We delivered first quarter results consistent with our expectations and are reaffirming our full-year guidance," said Kemper Isely, co-president of Natural Grocers. "Our differentiated offering of the highest quality natural and organic products, coupled with our marketing emphasis on value and Always Affordable prices, continues to resonate with consumers and drive demand. Product cost inflation remained elevated during the quarter, though our specialized supply chain has historically provided more cost stability compared to conventional grocery peers. We estimate annualized product cost inflation was approximately 8% in the first quarter, which we continued to offset with increased pricing."

The company reaffirmed its fiscal 2023 outlook based on the latest quarter results, with four to six new stores and one to two relocations/remodels expected during the period. Natural Grocers operates 166 stores in 21 states, where its private label products can be found.