Natural Grocers By Vitamin Cottage Stock Earnings Reports

Natural Grocers reported Q1 FY2026 results in line with expectations: net sales of $335.6M, daily average comparable store sales up 1.7% (two-year comp +10.6%), and diluted EPS of $0.49, up 14% YoY. Management affirmed full-year guidance, including daily average comp growth of 1.5%–4%, diluted EPS $2.00–$2.15, 6–8 new store openings (weighted to back half of year), 2–3 relocations/remodels, and $50M–$55M of capital expenditures. Key operational drivers include increased nPower Rewards penetration (83% of sales), private label growth (9.6% of sales, +70 bps YoY), and continued strength in meat, dairy and produce. Gross margin declined 40 bps to 29.5%, primarily due to higher inventory shrink driven by isolated events (weather-related power outages, some store closures) and lower product margin; store and admin expenses were down year over year. Liquidity remains strong (cash $23.2M, no borrowings, $67.6M available on revolver). Management noted a ~$0.12 EPS headwind in FY2026 from accelerated new-store preopening costs and expects that headwind to be roughly flat next year if store openings remain at ~8. Management emphasized cautious consumer behavior outside their rewards members, while Empower members continue to show stronger spending.