Strong Comps Drive Natural Grocers Q1 Sales

Strength across several categories coupled with strong comparable store sales were key factors in the first quarter revenue bump at Natural Grocers by Vitamin Cottage.

For the quarter ended December 31, net sales increased $21.3 million, or 7.6%, to $301.8 million, compared to the first quarter of fiscal 2023. The increase was driven by a $17.3 million increase in comparable store sales and a $5.5 million increase in new store sales, partially offset by a $1.5 million decrease in net sales related to closed stores. 

Daily average comparable store sales increased 6.2% in the first quarter of fiscal 2024, comprising a 3.4% increase in daily average transaction count and a 2.7% increase in daily average transaction size. The increase in net sales was driven by transaction count, retail price increases, new store sales, and marketing initiatives, including market-specific campaigns and (N)power rewards program offers that drove customer engagement.

Net income for the first quarter of fiscal 2024 was $7.8 million, or $0.34 diluted earnings per share, compared to net income of $4.4 million, or $0.19 diluted earnings per share, for the first quarter of fiscal 2023.

"Our strong first quarter results reflect a continuation of the positive trends we experienced in recent quarters," said Kemper Isely, co-president of Natural Grocers. “Our differentiated offering of carefully vetted natural and organic products, and compelling value proposition, continue to resonate with today's health-conscious consumers and distinguish us in the marketplace.”

Isley said the positive first quarter results have led the company to raise its fiscal 2024 outlook related to daily average comparable store sales and diluted earnings per share.

Natural Grocers is forecasting comparable sales growth of between 3% and 5% with diluted earnings per share of between $1.02 and $1.12. The company also expects to open four to six new stores and remodel or relocate four to six stores in the coming year.