Private Label Sales Help Boost Natural Grocers Q4 Results
Natural Grocers by Vitamin Cottage, Inc. reported strong growth in its fiscal year fourth quarter as private label products were cited by company officials as a factor in positive results.
For the quarter ended September 30, net sales increased $27.6 million, or 9.3%, to $322.7 million, compared to the fourth quarter of fiscal 2023. The growth was the result of a $21 million increase in comparable store sales and a $6.6 million increase in new store sales.
Daily average comparable store sales increased 7.1% in the fourth quarter of fiscal 2024, comprised of a 3.6% increase in daily average transaction count and a 3.4% increase in daily average transaction size.
Company officials said the increase in net sales was driven by increases in transaction counts, items per transaction, retail prices, and new store sales. Sales growth was driven by enhanced customer engagement with our {N}power rewards program, compelling offers, marketing initiatives, and increased sales of Natural Grocers brand products.
Net income for the fourth quarter of fiscal 2024 was $9 million, or $0.39 diluted earnings per share, compared to net income of $5.9 million, or $0.26 diluted earnings per share, for the fourth quarter of fiscal 2023.
During the fourth quarter, the company opened one new store, ending the fourth quarter with 169 stores in 21 states. A total of four new stores were opened during fiscal 2024.
"Our outstanding fourth quarter and fiscal year results underscore our customers' appreciation for our commitment to the exceptional quality, value, and convenience provided by our innovative business model along with consumers' increasing prioritization of products that support health and sustainability," said Kemper Isely, co-president of Natural Grocers by Vitamin Cottage, Inc. "Our commitment to offering the highest quality products at always affordable prices is distinctive in the market and has been pivotal to our success."
Net sales during fiscal 2024 increased $101 million, or 8.9%, to $1.2 billion, compared to fiscal 2023, due to an $83 million increase in comparable store sales and a $22.6 million increase in new store sales, partially offset by a $4.6 million decrease in sales related to closed stores. Daily average comparable store sales increased 7% in fiscal 2024, comprised of a 3.8% increase in daily average transaction count and a 3.1% increase in daily average transaction size.
Net income for fiscal 2024 was $33.9 million, or $1.47 diluted earnings per share, compared to net income of $23.2 million, or $1.02 diluted earnings per share, for fiscal 2023.
Looking ahead to fiscal year 2025, the company expects to open 4 to 6 new stores and complete 2 to 4 relocations or remodels. It also expects daily average comparable store sales growth of between 4% and 6%.
