NGVC

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 4:30 p.m. ET Vice President, Treasurer - Jessica Thiessen Co-President - Kemper Isely Chief Financial Officer - Richard Hallé Operator: Good day, ladies and gentlemen. Welcome to the Natural Grocers Third Quarter Fiscal Year 2026 Earnings Conference Call. [Operator Instructions] As a reminder, today's call is being recorded. I'd now like to turn the conference over to Ms. Jessica Thiessen, Vice President, Treasurer for Natural Grocers. Ms. Thiessen, you may begin. Jessica Thiessen: Good afternoon, and thank you for joining us for the Natural Grocers by Vitamin Cottage Third Quarter Fiscal Year 2026 Earnings Conference Call. On the call with me today are Kemper Isely, Co-President; and Richard Hallé, Chief Financial Officer. As a reminder, certain information provided during this conference call, including the company's outlook for fiscal 2026, contains forward-looking statements based on current expectations and assumptions and are subject to risks and uncertainties. Actual results could differ materially from those described in the forward-looking statements due to a variety of factors, including the risks and uncertainties detailed in the company's most recently filed Forms 10-Q and 10-K. The company undertakes no obligation to update forward-looking statements. Our remarks today include references to adjusted EBITDA, which is a non-GAAP measure. Please see our earnings release for a reconciliation of adjusted EBITDA to net income. Today's earnings release will be available on the company's website, and a recording of this call will be available on the website at investors.naturalgrocers.com. Now I will turn the call over to Kemper. Kemper Isely: Thank you, Jessica, and good afternoon, everyone. During today's call, I will provide an overview of our financial results and highlight key initiatives supporting long-term growth. Rich will then review our third quarter results in greater detail and discuss our fiscal year guidance. We delivered positive daily average comparable store sales growth in the third quarter despite a challenging consumer environment, with comp growth accelerating to 1.2% from 0.5% in the second quarter. We believe third quarter sales trends reflected continued economic uncertainty and sustained focus on value among consumers, consistent with trends observed across the grocery retail sector. In the third quarter, we continued to see strong membership gains in our {N}power Rewards program. Net sales penetration increased 2 percentage points from the prior year period to 84%, highlighting our customers' appreciation for the program's value and benefits. Sales engagement with {N}power members also outperformed in key metrics, generating growth in sales, traffic and basket size during the quarter. {N}power remains an effective tool for optimizing promotions, strengthening customer engagement and building loyalty. As the value leader in natural and organic grocery retail, we continue to emphasize our always affordable pricing through initiatives such as our Even More Affordable campaign, which features rotating everyday staples, including our Natural Grocers brand products. We believe growing consumer prioritization of health and wellness remains a durable trend and creates a meaningful long-term growth opportunity. By pairing rigorous product standards with our always affordable pricing strategy, we deliver exceptional value, strengthen customer loyalty and reinforce our competitive differentiation. Our unit growth strategy continues to gain momentum with 6 stores opened fiscal year-to-date. During the third quarter, we opened three new stores, including our first store in Wisconsin and relocated one store. In July, we opened two new stores and expect to open one additional new store later in the fourth quarter. All six new store openings this year and the two from last year for that matter, rank among our strongest opening day sales performances, a testament to the effectiveness of our marketing efforts. We see significant opportunities to expand our store footprint and remain focused on delivering annual unit growth of 4% to 5% for the foreseeable future. A new initiative we are very excited about is our expanding e-commerce capabilities. In mid-July, we launched a new partnership with DoorDash, extending delivery access across our entire store base with in-store pricing on delivery orders made through DoorDash. Later this month, we will integrate our {N}power Rewards program into DoorDash and further enhance online shopping through the Natural Grocers website, creating additional opportunities to serve customers however they choose to shop. In the coming months, we will phase in curbside pickup across all stores. We continue to partner with Instacart to offer delivery service and pickup at select stores. We believe these enhancements to our e-commerce offering will expand customer access to Natural Grocers, driving incremental transactions from existing customers and attracting new shoppers. While we're still in the initial phase of this new partnership, we view these initiatives as an important step in supporting long-term sales growth and enhancing operating leverage while remaining committed to delivering the differentiated in-store experience that defines our brand. Finally, I want to thank our good4u Crew for their continued dedication to serving our customers. Their commitment to delivering exceptional service is a cornerstone of our differentiated model and one of the key reasons customers choose Natural Grocers. Now I will turn our call over to Rich to discuss our financial results in greater detail and fiscal 2026 guidance. Richard Hallé: Thank you, Kemper, and good afternoon. Third quarter net sales increased 1.8% from the prior year period to $334.7 million. Daily average comparable store sales increased 1.2%, comprised of a 3.1% increase in basket size and a 1.8% decrease in transaction count. We saw a sequential improvement in comp through the quarter. Our most differentiated categories, produce, dairy and meat continued to lead sales growth. Furthermore, Natural Grocers brand penetration increased 110 basis points year-over-year to 9.7% of total sales. Gross margin decreased 60 basis points to 29.3%, driven by lower product margin, primarily due to an unfavorable change in sales mix as well as higher merchandise inventory shrink and freight costs. Our primary distributor cybersecurity incident in the third quarter of fiscal 2025 affected the year-over-year comparability of product margin mix and shrink for the current period. Higher shrink was also partially attributable to temporary operational impacts related to our ERP system upgrade completed in the previous quarter. Store expenses as a percentage of net sales decreased 20 basis points from the prior year, driven by expense management. Administrative expenses were $9.5 million compared to $10.9 million in the third quarter of fiscal 2025. Administrative expenses during the third quarter of fiscal 2026 included a business interruption insurance recovery gain of $2 million related to the cybersecurity incident for the company's primary distributor in June and July of 2025. Preopening expenses increased $1.3 million or 40 basis points as a percentage of net sales year-over-year, driven by the acceleration of new store openings. Our investment in preopening expenses impacted diluted earnings per share by approximately $0.04. Net income was $11.1 million or $0.48 diluted earnings per share compared to net income of $11.6 million or $0.50 diluted earnings per share for the third quarter of fiscal 2025. Adjusted EBITDA decreased $1.8 million or 7.6% to $22.5 million, including a reduction for the $2 million business interruption recovery gain. Turning to the balance sheet and cash flow. We ended the third quarter in a strong liquidity position, including $17.5 million in cash and cash equivalents, no outstanding credit facility borrowings and $67.3 million available for borrowing on our revolving credit facility. During the first nine months of fiscal 2026, we generated cash from operations of $55.1 million and invested $40.3 million in net capital expenditures, primarily for new and relocated stores and real property acquisitions, resulting in free cash flow of $14.8 million. Today, we are refining the company's fiscal year outlook to reflect our third quarter results while remaining thoughtful about the evolving consumer environment. Our outlook includes the following: open 6 to 7 new stores compared to our prior outlook of between 6 and 8, relocate or remodel 2 existing stores compared to our prior outlook of between 2 and 3 stores; achieve daily average comparable store sales growth between 1.5% and 2% compared to our prior outlook of between 1.5% and 2.5%. Diluted earnings per share between $2.07 and $2.11, including incremental investment related to new stores of $0.08 compared to our prior outlook of between $2.07 and $2.15. And capital expenditures of $45 million to $50 million, unchanged from our prior outlook. One additional note regarding our fourth quarter, we have elected to close stores on Labor Day this year, resulting in one fewer selling day in the fourth quarter compared to last year. We expect the majority of sales that otherwise would have occurred on Labor Day to shift to adjacent days. In closing, based on our year-to-date performance and full year outlook, we are pleased with the comparable store sales growth achieved in a challenging consumer environment and the earnings growth delivered through disciplined expense management while continuing to invest in accelerated new store expansion. We believe our differentiated customer value proposition, accelerating unit growth and exposure to favorable health and wellness trends position Natural Grocers to generate sustainable long-term growth and stockholder value. Now we'd like to open the line for questions. Thank you. Operator: [Operator Instructions] Our first question comes from Aaron Grey of Alliance Global. Aaron Grey: First question for me, I just want to ask broader impacts you might be seeing from downtrade in the category and how we should think about the gross margin? It sounded like some of the impacts on the quarter might have been more onetime in nature. So how should we think about the evolution of the gross margin given some downtrade we might be seeing in the category and some price action you might be seeing from your competitors? Kemper Isely: Well, as far as downtrading, we haven't really seen a lot of downtrading at our stores. I mean our products are pretty consistently of high quality and affordable price. There really isn't a lot of trading for lower quality or lower price items at our stores. As far as promotional activity by our competitors, we've always been the price leader compared to our closest competitors in our industry, and we still are. And so we haven't really seen a lot of -- a whole lot of dramatic price changes. And we've always been focused on keeping prices on high-profile items like eggs and avocados at a very competitive and best price in the industry. As far as the margin issue, yes, we think that it will be isolated to this quarter. We had some unusual circumstances that caused some comparisons to last year to be a little bit unfavorable. Aaron Grey: Appreciate that color. Second one for me, just on some of the new store initial sales that you talked about being company records. Can you maybe provide some of the color you talked about in terms of attributing it to marketing? And maybe bigger picture, if you would attribute that to some of the broader brand awareness that you're seeing for Natural Grocers, not just in existing markets, but maybe even in new markets such as Wisconsin that you called out? Kemper Isely: Yes. Our marketing department is excellent, and they do a very good job of getting us well known in the communities before we open. And our brand resonates in new communities such as Wisconsin. That store that opened there was our second best opening day ever and then it was our best opening day ever, and then it was opening in Rapid City eclipsed it a couple of weeks later. And that would be a new community in South Dakota. I mean we have one on the east end of South Dakota. Now we have a store on the west end of South Dakota. We've been well received in both communities and then very well received in the Lake Geneva community in Wisconsin. And it just goes to show how our differentiated selling of products resonates with those communities. Operator: Our next question comes from Scott Mushkin of R5 Capital. Scott Mushkin: So I wanted to dig into {N}power a little bit more. I actually got a question from an investor, and I was actually a little bit embarrassed because I couldn't actually answer it as well as I wanted to. So it was actually -- the question was, what do you think are the top things that differentiate {N}power from other programs that are out there? Why is it so effective, I guess, is the crux of the question? Kemper Isely: It's so effective because we have learned what our customers want in a loyalty program. And we give them a little bit -- instead of just giving them a discount on gas like most of the supermarket programs do, we give them special discounts on certain commodities that like eggs and avocados that they value that's very valuable to them. And then we give them special offers that are tailored toward their shopping patterns that they very much value. And then we offer games that they like to play and people enjoy playing games. And so it encourages shopping, the games that we offer to them. Scott Mushkin: And then my second question actually goes to just the environment in the industry. The economy is clearly complicated. Obviously, there's some pressures there with the gas prices. But on the flip side is you have a massive wealth effect going on. And so -- and then, of course, the industry dynamics are fairly complicated, too, right? We got the GLP-1 craze, the population issues as far as growth in population. So I was just wondering like -- are you seeing different dynamics through it? It seems to me that you could make a case that the economy is actually better than a lot of people are -- or the news -- is in the news flow. And how much do you attribute to straight out the economy? And how much is it some of the challenges related to what's going on in the industry with the different trends as far as the eating habits and other things? So I just wonder if you guys could dive into that a little bit. I know Kemper, you've been in the business forever. I'd love to hear your insights. Kemper Isely: Well, our most loyal customers have stayed extremely loyal and everybody that we've added to {N}power is becoming loyal. And as you heard in the call, our penetration is increasing. And so with those customers, we're doing really well, and there doesn't seem to be any issues. The people that we've lost a little bit on are the marginal customers. And they probably have some economic distress going on because of the price of gasoline, the price of heating and the summer air conditioning it's been really hot. And so those customers have pulled back a little bit. But we're very optimistic that our differentiated brand will continue to attract people that are coming to the MAHA, Make America Healthy Again, sort of conclusion that they need to become healthy. And so as more and more people become aware of eating properly and taking nutritional supplements, they will naturally migrate towards our stores because we're really the only authentic national chain that has the offering for those type of people crave and want. Scott Mushkin: Yes, I keep waiting for you guys to open up a store in Florida, but I don't know, I might have to wait a bit. Kemper Isely: Well, at least we got up into Wisconsin. Scott Mushkin: Exactly. Thanks. Kemper Isely: You never know, it might get a little bit. I could even go a little bit farther east. You never know. Operator: Our next question comes from Chuck Cerankosky of Northcoast Research. Charles Cerankosky: Just a quick question because I didn't get your data point. How many cents per share did you say there would be a preopening costs in the year or the quarter or the fourth quarter? Richard Hallé: Yes. It was $0.04 in the quarter, and it was $0.08 for the full year. Charles Cerankosky: Okay. So we've seen half of it already. Richard Hallé: Well, we’ve seen more than half. $0.04 was the quarter, $0.08’s the total year. Kemper Isely: And then there'll be a couple more in the next quarter. Charles Cerankosky: Okay. $0.04 in the third quarter. And then recently, there was a federal court ruling that's going to force a variety of mainstream products to disclose more GMO ingredients. Do you see that playing a role in interest in Natural Grocers products, especially in concert with the increased support of healthy eating? Kemper Isely: Well, yes, I mean, we were the plaintiff in that case. So we definitely think that it was an important ruling that people will actually have to disclose that they have GMOs in their products because it's a concern to people that want to eat a clean diet. And so it really plays into our strength, the ruling does. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Kemper Isely for any closing remarks. Kemper Isely: Thank you. We are honored to be named the 2026 Sustainability Retailer of the Year by Produce Business, a leading trade publication serving the fresh produce industry. This recognition reflects our long-standing commitment to sustainability, including our 100% certified organic produce offering, support for regenerative agriculture and environmental stewardship initiatives. This month marks our company's 71st year serving our communities. I encourage you to visit one of our locations between August 13 and 15 to celebrate our anniversary with us. Thank you for joining us. We look forward to updating you on our next call regarding the fourth quarter and full fiscal year 2026 results. Thank you, and have a great day. Goodbye. Operator: This conference call has now concluded. Thank you for attending the Natural Grocers Third Quarter Fiscal Year 2026 Earnings Conference Call. You may now disconnect. Before you buy stock in Natural Grocers By Vitamin Cottage, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Natural Grocers By Vitamin Cottage wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Natural Grocers By Vitamin Cottage. The Motley Fool has a disclosure policy. Natural Grocers (NGVC) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Shares of Natural Grocers by Vitamin Cottage, Inc. NGVC have declined 13.8% since the company reported its earnings for the quarter ended June 30, 2026. This compares with the S&P 500 index’s 0.3% decline over the same time frame. Over the past month, the stock has fallen 15.7% against the S&P 500’s 2.3% increase. Natural Grocers reported third-quarter fiscal 2026 earnings per share of 48 cents, which decreased 4% from 50 cents in the prior-year quarter. Net sales of $334.7 million denoted a 1.8% rise from the prior-year quarter. Net income declined to $11.1 million from $11.6 million; operating income fell to $15 million from $15.6 million, with operating margin contracting to 4.5% from 4.7%. Adjusted EBITDA decreased 7.8% to $22.5 million from $24.4 million, and adjusted EBITDA margin declined to 6.7% from 7.4%. Natural Grocers by Vitamin Cottage, Inc. price-consensus-eps-surprise-chart | Natural Grocers by Vitamin Cottage, Inc. Quote Daily average comparable-store sales increased 1.2%, accelerating from 0.5% growth in the second quarter and rising 8.6% on a two-year basis. The quarterly comparable-sales gain reflected a 3.1% increase in daily average transaction size, partly offset by a 1.8% decline in transaction count. Natural Grocers opened three stores and relocated one during the quarter, ending June with 172 stores across 22 states. Two additional stores opened after quarter-end. The {N}power Rewards program remained an important engagement driver, with its share of net sales rising two percentage points year over year to 84%. Management said member sales, traffic and basket size increased during the quarter. Natural Grocers brand penetration also increased 110 basis points to 9.7% of total sales, while produce, dairy and meat led sales growth. Management characterized the consumer environment as challenging, citing continued economic uncertainty and consumers’ sustained focus on value. However, the company said it had not observed significant downtrading within its stores and continued to view its pricing position and differentiated natural and organic assortment as competitive strengths. Management also said the quarter’s gross-margin pressure should be largely isolated, reflecting unusual year-over-year comparisons. The company remains focused on accelerating store expansion, targeting annual unit growth of 4-5% for the foreseeable future. Management highlighted strong opening-day sales at recently launched locations, including its entry into Wisconsin, as evidence of favorable reception in new markets. Gross margin decreased 60 basis points year over year to 29.3%, primarily due to unfavorable sales mix, higher merchandise inventory shrink and increased freight costs. The prior-year cybersecurity incident at the company’s primary distributor also affected comparisons, while management said higher shrink was partly attributable to temporary operational effects from an ERP system upgrade completed in the preceding quarter. Store expenses increased 0.7% to $72.2 million but declined as a percentage of sales to 21.6% from 21.8%. Administrative expenses fell to $9.5 million from $10.9 million and included a $2 million business-interruption insurance recovery gain. Pre-opening expenses rose to $1.3 million from less than $0.1 million, with management estimating that accelerated new-store investment reduced quarterly EPS by approximately 4 cents. As of June 30, 2026, Natural Grocers had $17.5 million in cash and cash equivalents, up from $17.1 million as of Sept. 30, 2025. There were no outstanding borrowings under its $70 million revolving credit facility. Total assets of $687.7 million denoted a rise from $670.5 million as of Sept. 30, 2025. Total liabilities were $448.3 million, down from $458.1 million. Total stockholders’ equity increased to $239.4 million from $212.4 million. During the first nine months of fiscal 2026, the company generated $55.1 million in cash from operating activities, up from $39.7 million in the prior-year comparable period. Natural Grocers refined its fiscal 2026 outlook. It now expects six to seven new stores versus six to eight previously, two relocations or remodels versus two to three previously, and daily average comparable-store sales growth of 1.5% to 2% versus the previous 1.5-2.5% range. EPS is projected at $2.07-$2.11, narrowed from $2.07-$2.15. Capital expenditures remain projected at $45-$50 million. In mid-July, Natural Grocers launched a DoorDash partnership providing delivery across its entire store base at in-store pricing. Management also outlined plans to integrate {N}power Rewards with DoorDash, enhance online shopping through its website and phase in curbside pickup across all stores in coming months, while continuing its Instacart partnership. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Natural Grocers by Vitamin Cottage, Inc. (NGVC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Natural Grocers by Vitamin Cottage, Inc.? Here are five stocks we like better. Sales improved but profitability weakened: Third-quarter net sales rose 1.8% to $334.7 million, with comparable-store sales growth accelerating to 1.2%. Net income fell to $11.1 million from $11.6 million, while adjusted EBITDA declined 7.6% amid lower product margins, higher shrink and freight costs. Expansion and digital initiatives continued: Natural Grocers opened three stores during the quarter, including its first Wisconsin location, and remains focused on 4%–5% annual unit growth. It also launched DoorDash delivery, plans to add loyalty integration and is phasing in curbside pickup. Fiscal 2026 guidance was narrowed: The company now expects six to seven new stores, 1.5%–2% comparable-store sales growth and diluted EPS of $2.07–$2.11. Capital expenditure guidance remained unchanged at $45 million–$50 million. Analysts' Top 3 Retail Picks Gearing Up for a Strong 2025 Natural Grocers by Vitamin Cottage (NYSE:NGVC) reported a 1.8% increase in third-quarter fiscal 2026 net sales to $334.7 million, as comparable-store sales growth accelerated sequentially despite what management described as a challenging consumer environment. Daily average comparable-store sales rose 1.2% in the quarter, improving from 0.5% growth in the second quarter. The gain reflected a 3.1% increase in basket size, partly offset by a 1.8% decline in transaction count. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Chairman and Co-President Kemper Isely said the company continued to see consumer focus on value amid economic uncertainty. He also pointed to continued membership growth in its {N}power Rewards loyalty program. Sales penetration from members increased two percentage points from a year earlier to 84% of sales, while member engagement produced growth in sales, traffic and basket size, according to the company. “As the value leader in natural and organic grocery retail, we continue to emphasize our always affordable pricing,” Isely said, citing the company’s Even More Affordable campaign for rotating everyday staples and Natural Grocers Brand products. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Third-quarter net income was $11.1 million, or $0.48 per diluted share, compared with $11.6 million, or $0.50 per diluted share, in the prior-year quarter. Adjusted EBITDA declined 7.6% to $22.5 million. Gross margin decreased 60 basis points from the prior year to 29.3%. Chief Financial Officer Richard Hallé attributed the decline primarily to lower product margin from an unfavorable sales mix, along with higher inventory shrink and freight expenses. → No Hangover: Revisiting Microsoft One Week After Earnings Hallé said year-over-year comparisons were affected by a cybersecurity incident involving the company’s primary distributor in the third quarter of fiscal 2025. He also said elevated shrink partly reflected temporary operational effects from an enterprise resource planning system upgrade completed during the previous quarter. Administrative expenses fell to $9.5 million from $10.9 million a year earlier. The current-quarter result included a $2 million business-interruption insurance recovery related to the distributor cybersecurity incident in June and July 2025. Pre-opening expenses increased $1.3 million year over year as the company accelerated store openings. Management said those costs reduced diluted earnings per share by about $0.04 during the quarter and are expected to represent $0.08 of full-year earnings per share. Natural Grocers ended the quarter with $17.5 million in cash and cash equivalents, no outstanding borrowings under its credit facility, and $67.3 million available under its revolving credit facility. For the first nine months of fiscal 2026, cash from operations totaled $55.1 million, while net capital expenditures were $40.3 million, resulting in free cash flow of $14.8 million. The company opened three stores during the third quarter, including its first location in Wisconsin, and relocated one store. It has opened six stores so far in fiscal 2026, including two openings in July, and expects to open one additional store in the fourth quarter. Isely said all six fiscal-year-to-date openings, along with the two stores opened last year, ranked among the company’s strongest opening-day sales performances. In response to an analyst question, he said the Wisconsin store initially set a company record for opening-day sales before a subsequent opening in Rapid City, South Dakota, surpassed it. Management continues to target annual unit growth of 4% to 5% for the foreseeable future. The company also launched a DoorDash partnership in mid-July, providing delivery access across its store base with in-store pricing on DoorDash orders. Later in August, Natural Grocers expects to integrate {N}power Rewards into DoorDash and enhance online shopping through its website. The company plans to phase in curbside pickup across all stores in coming months. It also continues to work with Instacart for delivery and pickup at select locations. Natural Grocers refined several components of its fiscal 2026 guidance while maintaining its capital expenditure outlook. The company now expects: Six to seven new store openings, compared with its prior forecast for six to eight openings. Two store relocations or remodels, compared with a previous expectation of two to three. Daily average comparable-store sales growth of 1.5% to 2%, narrowing the prior 1.5% to 2.5% range. Diluted earnings per share of $2.07 to $2.11, compared with prior guidance of $2.07 to $2.15. Capital expenditures of $45 million to $50 million, unchanged from previous guidance. Hallé said the company will close stores on Labor Day, resulting in one fewer selling day in the fourth quarter than in the prior year. Management expects most sales that would have occurred on the holiday to shift to adjacent days. During the question-and-answer session, Isely said the company had not seen significant customer trading down to lower-quality products, arguing that its assortment already emphasizes high-quality products at affordable prices. He said management views the gross-margin pressure as isolated to the third quarter because of unusual comparison factors. Isely also said the company’s most loyal customers have remained loyal, while some more marginal customers may have pulled back because of household expenses such as gasoline, heating and air conditioning. He said the company believes growing consumer interest in health and wellness could support longer-term demand. Natural Grocers by Vitamin Cottage, Inc operates a chain of specialty grocery stores focused on natural and organic products. Founded in 1955 by Margaret and Philip Isely in Lakewood, Colorado, the company has built a reputation on strict product standards, including certified organic produce, non-GMO groceries and dietary supplements. Natural Grocers emphasizes whole, unprocessed foods and carries a broad assortment of private-label and national brands that meet its quality guidelines. The company's core offerings include fresh fruits and vegetables, bulk foods, vitamins, minerals and nutritional supplements, as well as natural body care and household items. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Natural Grocers by Vitamin Cottage Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Daily average comparable store sales growth accelerated to 1.2% in Q3, driven by a 3.1% increase in basket size which offset a 1.8% decrease in transaction count. Management attributes sales trends to continued economic uncertainty and a sustained consumer focus on value across the grocery retail sector. The {N}power Rewards program reached 84% net sales penetration, with members outperforming in sales, traffic, and basket size metrics. Unit growth strategy gained momentum with six stores opened fiscal year-to-date, including the company's first entry into the Wisconsin market. New store openings have achieved some of the strongest opening day sales performances in company history, which management credits to effective localized marketing. Gross margin compression of 60 basis points was primarily driven by unfavorable sales mix, higher inventory shrink, and increased freight costs. Operational impacts from a previous ERP system upgrade and a prior-year cybersecurity incident at a primary distributor affected year-over-year margin and shrink comparability. Fiscal 2026 guidance was refined to reflect Q3 results, now expecting daily average comparable store sales growth of 1.5% to 2.0%. The company plans to open 6 to 7 new stores in fiscal 2026, maintaining a long-term annual unit growth target of 4% to 5%. E-commerce capabilities are expanding through a new DoorDash partnership featuring in-store pricing and upcoming integration with the {N}power program. Management expects to phase in curbside pickup across all store locations in the coming months to drive incremental transactions. Q4 results will be impacted by the decision to close stores on Labor Day, though management anticipates the majority of those sales will shift to adjacent days. Administrative expenses included a $2 million business interruption insurance recovery gain related to a 2025 distributor cybersecurity incident. Preopening expenses increased by $1.3 million year-over-year, impacting diluted earnings per share by approximately $0.04 in the third quarter. Management identified economic distress among 'marginal customers' due to high energy and cooling costs as a headwind to transaction counts. A federal court ruling requiring more transparent GMO labeling is viewed as a strategic tailwind that reinforces the company's clean-label product standards. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management stated they have not seen significant downtrading because their products are already positioned as high-quality and affordable. The gross margin pressure seen in Q3 is expected to be isolated to the quarter, as it was caused by unusual comparative circumstances from the prior year. Success in new markets like Wisconsin and new communities like Rapid City, South Dakota, is attributed to a marketing department that builds brand awareness before doors open. Management believes their differentiated product standards resonate strongly even in communities where they previously had no physical presence. The program focuses on deep discounts for high-value staples like eggs and avocados rather than generic rewards like fuel points. Engagement is driven by personalized offers based on shopping patterns and interactive elements like games that encourage frequent visits.

This article first appeared on GuruFocus. Net Sales: Increased 1.8% year over year to $334.7 million in the third quarter. Daily Average Comparable Store Sales: Increased 1.2%, accelerating from 0.5% in the second quarter. Comparable Store Sales Components: Basket size increased 3.1%, while transaction count decreased 1.8%. Gross Margin: Decreased 60 basis points to 29.3% of net sales. Store Expenses: Decreased 20 basis points as a percentage of net sales. Administrative Expenses: $9.5 million, compared to $10.9 million in the prior year period, including a $2 million business interruption insurance recovery gain. Pre-Opening Expenses: Increased $1.3 million or 40 basis points as a percentage of net sales. Net Income: $11.1 million, or $0.48 diluted earnings per share, compared to $11.6 million, or $0.50 diluted earnings per share, in the prior year period. Adjusted EBITDA: Decreased $1.8 million, or 7.6%, to $22.5 million. Cash and Cash Equivalents: $17.5 million at the end of the third quarter. Cash Flow from Operations: $55.1 million for the first nine months of fiscal 2026. Capital Expenditures: $40.3 million in net capital expenditures for the first nine months of fiscal 2026. Free Cash Flow: $14.8 million for the first nine months of fiscal 2026. Natural Grocers Brand Penetration: Increased 110 basis points year over year to 9.7% of total sales. {N}power Rewards Net Sales Penetration: Increased 2 percentage points from the prior year period to 84%. Store Openings: Opened three new stores in the third quarter, including the first store in Wisconsin, and relocated one store; six new stores opened fiscal year to date. Warning! GuruFocus has detected 7 Warning Signs with VSTM. Is NGVC fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Daily average comparable store sales growth accelerated to 1.2% in Q3 from 0.5% in Q2, despite a challenging consumer environment. {N}power Rewards program membership gains drove net sales penetration up 2 percentage points year-over-year to 84%, with members generating growth in sales, traffic, and basket size. New store openings, including the first in Wisconsin, rank among the company's strongest opening day sales performances, with six stores opened fiscal year-to-date. Launched a new partnership with DoorDash for delivery across all stores with in-store pricing, and plans to integrate {N}power Rewards and phase in curbside pickup, expanding e-commerce capabilities. Natural Grocers brand penetration increased 110 basis points year-over-year to 9.7% of total sales, and the company was named 2026 Sustainability Retailer of the Year by Produce Business. Strong liquidity position with $17.5 million in cash, no outstanding credit facility borrowings, and $67.3 million available for borrowing. Gross margin decreased 60 basis points to 29.3%, driven by lower product margin due to unfavorable sales mix, higher merchandise inventory shrink, and freight costs. Transaction count decreased 1.8% in Q3, indicating a decline in customer visits, partially offset by a 3.1% increase in basket size. Adjusted EBITDA decreased $1.8 million or 7.6% to $22.5 million, including a reduction for the $2 million business interruption recovery gain. Pre-opening expenses increased $1.3 million or 40 basis points as a percentage of net sales, impacting diluted EPS by approximately $0.04 in the quarter. The company refined its fiscal 2026 outlook, lowering the comparable store sales growth range to 1.5%-2% from 1.5%-2.5% and reducing the EPS range to $2.07-$2.11 from $2.07-$2.15. The company elected to close stores on Labor Day, resulting in one fewer selling day in Q4, which could impact sales. Q: How should we think about the evolution of gross margin given potential down-trading in the category and competitive price actions? A: Kemper Isely (Co-President) stated that the company has not seen significant down-trading at its stores, as its products are consistently high-quality at affordable prices. He noted that Natural Grocers remains the price leader compared to its closest competitors and has not seen dramatic price changes. Regarding the margin decline, he attributed it to unusual circumstances isolated to the quarter, including unfavorable comparisons to the prior year. Q: Can you provide color on the record-breaking new store opening sales and attribute them to marketing and broader brand awareness in new markets like Wisconsin? A: Kemper Isely (Co-President) credited the company's excellent marketing department for building brand awareness before store openings. He highlighted that the new Wisconsin store had the second-best opening day ever, which was then eclipsed by a store in Rapid City, South Dakota. He noted that the differentiated product offering resonates well in new communities, demonstrating the strength of the brand. Q: What are the top things that differentiate the {N}power Rewards program from other loyalty programs, and why is it so effective? A: Kemper Isely (Co-President) explained that the program's effectiveness stems from understanding customer desires. Instead of offering gas discounts like typical supermarket programs, {N}power provides special discounts on valued commodities like eggs and avocados, tailored offers based on shopping patterns, and engaging games that encourage shopping. Q: Given the complex economic environment, how much of the sales trend is attributed to the economy versus industry trends like GLP-1 and changing eating habits? A: Kemper Isely (Co-President) stated that the most loyal customers remain extremely loyal, and new {N}power members are becoming loyal. The company has seen some pullback from marginal customers likely facing economic distress from higher gas and utility prices. However, he expressed optimism that the differentiated brand will continue to attract health-conscious consumers, as Natural Grocers is the only authentic national chain offering the products they desire. Q: How many cents per share did pre-opening costs impact the quarter and the full year? A: Richard Halle (CFO) confirmed that pre-opening expenses impacted diluted earnings per share by approximately $0.04 in the third quarter and $0.08 for the full fiscal year. Q: Do you see the recent federal court ruling on GMO disclosure playing a role in interest in Natural Grocers' products? A: Kemper Isely (Co-President) confirmed that Natural Grocers was a plaintiff in the case and believes the ruling is important. It will require companies to disclose GMOs in their products, which is a concern for consumers seeking a clean diet, and this plays directly into the company's strengths. Q: What drove the gross margin decline in the third quarter, and is it expected to be a one-time event? A: Richard Halle (CFO) explained that gross margin decreased 60 basis points to 29.3%, driven by lower product margin due to an unfavorable sales mix, higher merchandise inventory shrink, and freight costs. The shrink was partially attributable to the prior year's cybersecurity incident at their primary distributor and temporary operational impacts from the ERP system upgrade. The company believes these margin impacts are isolated to the quarter. Q: What is the company's updated outlook for fiscal 2026, and what factors were considered? A: Richard Halle (CFO) provided the refined outlook: opening six to seven new stores (down from six to eight), relocating or remodeling two stores (down from two to three), achieving daily average comparable store sales growth of 1.5% to 2% (down from 1.5% to 2.5%), and diluted EPS of $2.07 to $2.11 (down from $2.07 to $2.15). The outlook reflects third-quarter results and a thoughtful view of the evolving consumer environment. Q: Can you elaborate on the new e-commerce initiatives and their expected impact? A: Kemper Isely (Co-President) highlighted the new partnership with DoorDash, launched in mid-July, which extends delivery access across the entire store base with in-store pricing. The company will integrate the {N}power Rewards program into DoorDash later this month and phase in curbside pickup across all stores. These initiatives are expected to expand customer access, drive incremental transactions, and enhance operating leverage. Q: How did the company perform in terms of {N}power membership and sales penetration during the quarter? A: Kemper Isely (Co-President) reported strong membership gains, with net sales penetration increasing 2 percentage points year-over-year to 84%. Sales engagement with {N}power members outperformed key metrics, generating growth in sales, traffic, and basket size during the quarter. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

LAKEWOOD, Colo., Aug. 6, 2026 /PRNewswire/ -- Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) today announced results for its third quarter of fiscal 2026 ended June 30, 2026. Highlights for Third Quarter Fiscal 2026 Compared to Third Quarter Fiscal 2025 Net sales increased 1.8% to $334.7 million; Daily average comparable store sales increased 1.2%, and 8.6% on a two-year basis; Net income was $11.1 million, with diluted earnings per share of $0.48; and Opened three new stores and relocated one store. "We delivered positive daily average comparable store sales growth in the third quarter despite a challenging consumer environment, with comparable store sales growth accelerating to 1.2% from 0.5% in the second quarter. Furthermore, our new store unit growth strategy continues to gain momentum, with six stores opened fiscal year-to-date, including three during the third quarter and two subsequent to quarter-end," said Kemper Isely, Co-President. "We believe that our accelerating new store unit growth, an increasing consumer focus on health and wellness, and our differentiated offering – built on rigorous product standards and our Always AffordableSM pricing strategy – position Natural Grocers for long-term growth by delivering compelling value to customers and strengthening our competitive position." Mr. Isely added, "We are honored to be named the 2026 Sustainability Retailer of the Year by Produce Business, a leading trade publication serving the fresh produce industry. This recognition reflects our longstanding commitment to sustainability, from offering 100% certified organic produce to supporting regenerative agriculture and environmental stewardship. It also underscores the purpose-driven values that continue to guide our Company and serve our customers and communities." In addition to presenting the financial results of Natural Grocers by Vitamin Cottage, Inc. and its subsidiaries (collectively, the Company) in conformity with U.S. generally accepted accounting principles (GAAP), the Company is also presenting EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. The reconciliation from GAAP to these non-GAAP financial measures is provided at the end of this earnings release. Operating Results — Third Quarter Fiscal 2026 Compared to Third Quarter Fiscal 2025 Net sales during the third quarter of fiscal 2026 increased $6.0 million, or 1.8%, to $334.7 million, compared to the third quarter of fiscal 2025, due to a $4.0 million increase in comparable store sales and a $3.1 million increase in new store sales, partially offset by a $1.1 million decrease in net sales related to closed stores. Daily average comparable store sales increased 1.2% in the third quarter of fiscal 2026, comprised of a 3.1% increase in daily average transaction size and a 1.8% decrease in daily average transaction count. Gross profit during the third quarter of fiscal 2026 decreased $0.3 million to $98.0 million. Gross profit reflects earnings after product and store occupancy costs. Gross margin decreased to 29.3% during the third quarter of fiscal 2026, compared to 29.9% in the third quarter of fiscal 2025. The decrease in gross margin was driven by lower product margin primarily due to an unfavorable change in sales mix, as well as higher merchandise inventory shrink and freight costs. The Company's primary distributor's cybersecurity incident in the third quarter of fiscal 2025 affected the year-over-year comparability of product margin mix and shrink for the current period. Store expenses during the third quarter of fiscal 2026 increased 0.7% to $72.2 million. Store expenses as a percentage of net sales were 21.6% during the third quarter of fiscal 2026, down from 21.8% in the third quarter of fiscal 2025, driven by expense management. Administrative expenses during the third quarter of fiscal 2026 were $9.5 million, compared to $10.9 million in the third quarter of fiscal 2025. Administrative expenses as a percentage of net sales were 2.8% in the third quarter of fiscal 2026, down from 3.3% in the third quarter of fiscal 2025. Administrative expenses during the third quarter of fiscal 2026 included a business interruption insurance recovery gain of $2.0 million related to the Company's primary distributor's cybersecurity incident in June and July 2025. Pre-opening expenses during the third quarter of fiscal 2026 were $1.3 million compared to less than $0.1 million during the third quarter of fiscal 2025. Operating income for the third quarter of fiscal 2026 was $15.0 million, compared to $15.6 million in the third quarter of fiscal 2025. Operating margin during the third quarter of fiscal 2026 was 4.5%, down from 4.7% in the third quarter of fiscal 2025. Net income for the third quarter of fiscal 2026 was $11.1 million, or $0.48 diluted earnings per share, compared to net income of $11.6 million, or $0.50 diluted earnings per share, for the third quarter of fiscal 2025. Adjusted EBITDA for the third quarter of fiscal 2026 was $22.5 million, compared to $24.4 million in the third quarter of fiscal 2025. Operating Results — First Nine Months Fiscal 2026 Compared to First Nine Months Fiscal 2025 Net sales during the first nine months of fiscal 2026 increased $13.0 million, or 1.3%, to $1,007.7 million, compared to the first nine months of fiscal 2025, due to an $11.3 million increase in comparable store sales and a $6.6 million increase in new store sales, partially offset by a $5.0 million decrease in net sales related to closed stores. Daily average comparable store sales increased 1.1% in the first nine months of fiscal 2026, comprised of a 1.8% increase in daily average transaction size and a 0.6% decrease in daily average transaction count. Gross profit during the first nine months of fiscal 2026 increased $0.5 million, or 0.2%, to $299.3 million, compared to $298.9 million in the first nine months of fiscal 2025. Gross profit reflects earnings after product and store occupancy costs. Gross margin decreased to 29.7% during the first nine months of fiscal 2026, compared to 30.0% in the first nine months of fiscal 2025. The decrease in gross margin was driven by lower product margin primarily due to unfavorable sales mix and higher shrink. Store expenses during the first nine months of fiscal 2026 decreased 0.5% to $216.8 million, driven by expense management. Store expenses as a percentage of net sales were 21.5% during the first nine months of fiscal 2026, down from 21.9% in the first nine months of fiscal 2025. Administrative expenses during the first nine months of fiscal 2026 decreased 3.1% to $32.5 million, primarily driven by the business interruption insurance recovery gain of $2.0 million recorded during the third quarter of fiscal 2026 and lower compensation expenses, partially offset by higher technology expenses. Administrative expenses as a percentage of net sales were 3.2% during the first nine months of fiscal 2026, down from 3.4% in the first nine months of fiscal 2025. Pre-opening expenses were $2.3 million during the first nine months of fiscal 2026 compared to $0.9 million for the first nine months of fiscal 2025. Operating income for the first nine months of fiscal 2026 increased 2.7% to $47.7 million. Operating margin was 4.7% in each of the first nine months of fiscal 2026 and fiscal 2025. Net income for the first nine months of fiscal 2026 was $35.8 million, or $1.54 diluted earnings per share, compared to net income of $34.6 million, or $1.49 diluted earnings per share, for the first nine months of fiscal 2025. Adjusted EBITDA for the first nine months of fiscal 2026 was $73.4 million, compared to $73.5 million in the first nine months of fiscal 2025. Balance Sheet and Cash Flow As of June 30, 2026, the Company had $17.5 million in cash and cash equivalents and no outstanding borrowings on its $70.0 million revolving credit facility. During the first nine months of fiscal 2026, the Company generated $55.1 million in cash from operations and invested $40.3 million in net capital expenditures, primarily for new and relocated/remodeled stores and real property acquisitions. Dividend Announcement Today, the Company announced the declaration of a quarterly cash dividend of $0.15 per common share. The dividend will be paid on September 2, 2026 to stockholders of record at the close of business on August 17, 2026. Growth and Development During the third quarter of fiscal 2026, the Company opened three new stores. The Company ended the third quarter with 172 stores in 22 states. Since June 30, 2026, the Company opened two new stores. Fiscal 2026 Outlook The Company is refining its fiscal 2026 outlook: Earnings Conference Call The Company will host a conference call today at 2:30 p.m. Mountain Time (4:30 p.m. Eastern Time) to discuss this earnings release. The dial-in number is 1-888-347-6606 (US) or 1-412-902-4289 (International). The conference ID is "Natural Grocers Q3 FY 2026 Earnings Call." A simultaneous audio webcast will be available at http://Investors.NaturalGrocers.com and archived for a minimum of 20 days. About Natural Grocers by Vitamin Cottage Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) is an expanding specialty retailer of natural and organic groceries, body care products and dietary supplements. The grocery products sold by Natural Grocers must meet strict quality guidelines and may not contain artificial flavors, preservatives, or sweeteners (as defined in its standards), synthetic colors, or partially hydrogenated or hydrogenated oils. The Company sells only USDA certified organic produce and exclusively pasture-raised, non-confinement dairy products, and free-range eggs. Natural Grocers' flexible smaller-store format allows it to offer affordable prices in a shopper-friendly, clean and convenient retail environment. The Company also provides extensive free science-based nutrition education programs to help customers make informed health and nutrition choices. The Company, founded in 1955, has 174 stores in 22 states. Visit www.NaturalGrocers.com for more information and store locations. Forward-Looking Statements The following constitutes a "safe harbor" statement under the Private Securities Litigation Reform Act of 1995. Except for the historical information contained herein, statements in this release are "forward-looking statements" and are based on management's current expectations and are subject to uncertainty and changes in circumstances. All statements that are not statements of historical fact are forward-looking statements. Actual results could differ materially from these expectations due to changes in global, national, regional or local political, economic, inflationary, disinflationary, recessionary, business, interest rate, labor market, competitive, market, regulatory, trade policy, supply chain and other factors, and other risks detailed in the Company's Annual Report on Form 10-K and the Company's subsequent quarterly reports on Form 10-Q. The information contained herein speaks only as of the date of this release and the Company undertakes no obligation to publicly update forward-looking statements, except as may be required by the securities laws. For further information regarding risks and uncertainties associated with the Company's business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of the Company's filings with the Securities and Exchange Commission, including, but not limited to, the Form 10-K and the Company's subsequent quarterly reports on Form 10-Q, copies of which may be obtained by contacting Investor Relations at 303-986-4600 or by visiting the Company's website at http://Investors.NaturalGrocers.com. Investor Contact: Reed Anderson, ICR, 646-277-1260, [email protected] EBITDA and Adjusted EBITDA EBITDA and Adjusted EBITDA are not measures of financial performance under GAAP. We define EBITDA as net income before interest expense, provision for income taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA as adjusted to exclude the effects of certain income and expense items that management believes make it more difficult to assess the Company's actual operating performance, including certain items such as impairment charges, store closing costs, share-based compensation, amortization of SaaS implementation costs, business interruption insurance recovery gain, and non-recurring items. The following table reconciles net income to EBITDA and Adjusted EBITDA, dollars in thousands: EBITDA decreased 0.9% to $23.3 million for the three months ended June 30, 2026 compared to $23.5 million for the three months ended June 30, 2025. EBITDA increased 2.7% to $72.2 million for the nine months ended June 30, 2026 compared to $70.3 million for the nine months ended June 30, 2025. EBITDA as a percentage of net sales was 7.0% and 7.2% for the three months ended June 30, 2026 and 2025, respectively. EBITDA as a percentage of net sales was 7.2% and 7.1% for the nine months ended June 30, 2026 and 2025, respectively. Adjusted EBITDA decreased 7.6% to $22.5 million for the three months ended June 30, 2026 compared to $24.4 million for the three months ended June 30, 2025. Adjusted EBITDA decreased 0.1% to $73.4 million for the nine months ended June 30, 2026 compared to $73.5 million for the nine months ended June 30, 2025. Adjusted EBITDA as a percentage of net sales was 6.7% and 7.4% for the three months ended June 30, 2026 and 2025, respectively. Adjusted EBITDA as a percentage of net sales was 7.3% and 7.4% for the nine months ended June 30, 2026 and 2025, respectively. Management believes some investors' understanding of our performance is enhanced by including EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. We believe EBITDA and Adjusted EBITDA provide additional information about: (i) our operating performance, because they assist us in comparing the operating performance of our stores on a consistent basis, as they remove the impact of non-cash depreciation and amortization expense as well as items not directly resulting from our core operations, such as interest expense and income taxes and (ii) our performance and the effectiveness of our operational strategies. Additionally, EBITDA is a component of a measure in our financial covenants under our credit facility. Furthermore, management believes some investors use EBITDA and Adjusted EBITDA as supplemental measures to evaluate the overall operating performance of companies in our industry. Management believes that some investors' understanding of our performance is enhanced by including these non-GAAP financial measures as a reasonable basis for comparing our ongoing results of operations. By providing these non-GAAP financial measures, together with a reconciliation from net income, we believe we are enhancing investors' understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. Our competitors may define EBITDA and Adjusted EBITDA differently, and as a result, our measures of EBITDA and Adjusted EBITDA may not be directly comparable to EBITDA and Adjusted EBITDA of other companies. Items excluded from EBITDA and Adjusted EBITDA are significant components in understanding and assessing financial performance. EBITDA and Adjusted EBITDA are supplemental measures of operating performance that do not represent and should not be considered in isolation or as an alternative to, or substitute for, net income or other financial statement data presented in the consolidated financial statements as indicators of financial performance. EBITDA and Adjusted EBITDA have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of the limitations are: EBITDA and Adjusted EBITDA do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments; EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs; EBITDA and Adjusted EBITDA do not reflect any depreciation or interest expense for leases classified as finance leases; EBITDA and Adjusted EBITDA do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments on our debt; Adjusted EBITDA does not reflect share-based compensation, impairment of long-lived assets, store closing costs, amortization of SaaS implementation costs and business interruption insurance recovery gain; EBITDA and Adjusted EBITDA do not reflect our tax expense or the cash requirements to pay our taxes; and Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements. Due to these limitations, EBITDA and Adjusted EBITDA should not be considered as measures of discretionary cash available to us to invest in the growth of our business. We compensate for these limitations by relying primarily on our GAAP results and using EBITDA and Adjusted EBITDA as supplemental information. View original content to download multimedia:https://www.prnewswire.com/news-releases/natural-grocers-by-vitamin-cottage-announces-third-quarter-fiscal-2026-results-302845272.html

LAKEWOOD, Colo., Aug. 6, 2026 /PRNewswire/ -- Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) today announced that the Company's Board of Directors has declared a quarterly cash dividend of $0.15 per common share. The dividend will be paid on September 2, 2026 to all stockholders of record at the close of business on August 17, 2026. About Natural Grocers by Vitamin Cottage Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) is an expanding specialty retailer of natural and organic groceries, body care products and dietary supplements. The grocery products sold by Natural Grocers must meet strict quality guidelines and may not contain artificial flavors, preservatives, or sweeteners (as defined in its standards), synthetic colors, or partially hydrogenated or hydrogenated oils. The Company sells only USDA certified organic produce and exclusively pasture-raised, non-confinement dairy products, and free-range eggs. Natural Grocers' flexible smaller-store format allows it to offer affordable prices in a shopper-friendly, clean and convenient retail environment. The Company also provides extensive free science-based nutrition education programs to help customers make informed health and nutrition choices. The Company, founded in 1955, has 174 stores in 22 states. Visit www.NaturalGrocers.com for more information and store locations. Forward-Looking Statements The following constitutes a "safe harbor" statement under the Private Securities Litigation Reform Act of 1995. Except for the historical information contained herein, statements in this release are "forward-looking statements" and are based on management's current expectations and are subject to uncertainty and changes in circumstances. All statements that are not statements of historical fact are forward-looking statements. Actual results could differ materially from these expectations due to changes in global, national, regional or local political, economic, inflationary, disinflationary, recessionary, business, interest rate, labor market, competitive, market, regulatory, trade policy, supply chain and other factors, and other risks detailed in the Company's Annual Report on Form 10-K and the Company's subsequent quarterly reports on Form 10-Q. The information contained herein speaks only as of the date of this release and the Company undertakes no obligation to publicly update forward-looking statements, except as may be required by the securities laws. For further information regarding risks and uncertainties associated with the Company's business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of the Company's filings with the Securities and Exchange Commission, including, but not limited to, the Form 10-K and the Company's subsequent quarterly reports on Form 10-Q, copies of which may be obtained by contacting Investor Relations at 303-986-4600 or by visiting the Company's website at http://Investors.NaturalGrocers.com. Investor Contact: Reed Anderson, ICR, 646-277-1260, [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/natural-grocers-by-vitamin-cottage-inc-declares-quarterly-dividend-302845274.html

LAKEWOOD, Colo., July 23, 2026 /PRNewswire/ -- Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) today announced that the Company will release its third quarter fiscal year 2026 financial results after the market close on Thursday, August 6, 2026. Following the release via the wire services, the Company will host a conference call with financial analysts and investors at 2:30 p.m. Mountain Time (4:30 p.m. Eastern Time). To participate in the conference call, dial 1-888-347-6606 (U.S.); 1-855-669-9657 (Canada); or 1-412-902-4289 (International). The conference ID is "Natural Grocers Q3 FY 2026 Earnings Call." Please dial in at least five minutes before the start of the conference call. Investors and other parties may listen to the webcast of the conference call by logging on via the Investor Relations section of the Company's website at http://investors.naturalgrocers.com/ or directly at https://app.webinar.net/YoprlKBxbya. An audio recording of the conference call will be archived for a minimum of 20 days on the Company's website at http://investors.naturalgrocers.com/. About Natural Grocers by Vitamin Cottage Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) is an expanding specialty retailer of natural and organic groceries, body care products and dietary supplements. The grocery products sold by Natural Grocers must meet strict quality guidelines and may not contain artificial flavors, preservatives, or sweeteners (as defined in its standards), synthetic colors, or partially hydrogenated or hydrogenated oils. The Company sells only USDA certified organic produce and exclusively pasture-raised, non-confinement dairy products, and free-range eggs. Natural Grocers' flexible smaller-store format allows it to offer affordable prices in a shopper-friendly, clean and convenient retail environment. The Company also provides extensive free science-based nutrition education programs to help customers make informed health and nutrition choices. The Company, founded in 1955, has 174 stores in 22 states. Visit www.NaturalGrocers.com for more information and store locations. Investor Contact: Reed Anderson, ICR, 646-277-1260, [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/natural-grocers-by-vitamin-cottage-inc-announces-third-quarter-fiscal-year-2026-earnings-conference-call-and-webcast-302833478.html

Shares of Natural Grocers by Vitamin Cottage, Inc. NGVC have gained 3.6% since the company reported earnings for the quarter ended March 31, 2026, outperforming the S&P 500 index’s 1.1% increase over the same period. Over the past month, however, the stock rose 6.4%, slightly trailing the S&P 500’s 6.8% advance. Natural Grocers reported second-quarter fiscal 2026 earnings per share of 58 cents, which rose from 56 cents a year earlier. Net sales of $337.4 million denoted a 0.5% rise from $335.8 million in the year-ago quarter, driven by gains in comparable store sales and contributions from new stores. Daily average comparable store sales also increased 0.5%, while net income climbed 2.5% to $13.4 million. Adjusted EBITDA increased 4% to $27.4 million, reflecting disciplined expense management and improved operating efficiency. Natural Grocers by Vitamin Cottage, Inc. price-consensus-eps-surprise-chart | Natural Grocers by Vitamin Cottage, Inc. Quote Comparable sales growth was supported by a 1.6% increase in average transaction size, partly offset by a 1.1% decline in transaction count. On a two-year basis, comparable sales increased 9.4%, which management said continued to outpace broader grocery industry trends. Dairy, produce and meat remained the strongest-performing categories during the quarter. Gross profit rose to $102.4 million from $101.7 million in the prior-year quarter, while gross margin expanded 10 basis points to 30.4%. Management attributed the improvement primarily to lower occupancy costs as a percentage of sales and stable product margins, including inventory shrink. Store expenses declined 1.6% to $71.6 million due to expense management initiatives, lowering store expenses as a percentage of net sales to 21.2% from 21.7%. Administrative expenses increased 10% to $12.1 million, largely due to higher technology-related spending associated with the company’s enterprise resource planning (ERP) system upgrade. Despite those higher costs, operating income increased 3.1% to $18.1 million, and operating margin improved to 5.4% from 5.2% a year earlier. Management characterized the quarter as resilient despite a challenging consumer backdrop. Co-president Kemper Isely said the company benefited from strong store-level execution and value-focused positioning in natural and organic grocery retail. On the earnings call, he noted that consumers continued prioritizing health and wellness spending even amid broader economic uncertainty. The company also highlighted strong engagement with its loyalty program, stating that net sales penetration from its {N}power rewards program increased three percentage points to 84% of sales. Management said the program continues to support promotional effectiveness and customer retention. Natural Grocers’ brand penetration reached 9.8% of total sales, up 120 basis points from the prior year period. Executives acknowledged some softness among less loyal shoppers. During the conference call, management said average items per basket declined by 0.3 items and that some customers reduced discretionary spending amid macroeconomic uncertainty. However, loyal customers continued shopping at normal levels. The company also completed a major ERP upgrade during the quarter. Management described the implementation as one of the company’s largest systems projects to date and said the upgraded platform is expected to improve operational efficiency, data visibility and long-term scalability. Natural Grocers ended the quarter with $20.7 million in cash and cash equivalents and no outstanding borrowings under its $70 million revolving credit facility. Cash generated from operations totaled $43.8 million during the first six months of fiscal 2026, while capital expenditures reached $30.3 million, mainly tied to new stores, relocations and real estate acquisitions. The company opened one new store during the second quarter and ended the period with 169 stores across 21 states. Since quarter-end, it has relocated one store and opened another new location. Management reiterated its long-term target of 4% to 5% annual unit growth. Natural Grocers narrowed its comparable sales guidance for fiscal 2026 and raised the low end of its earnings outlook. The company now expects daily average comparable store sales growth of 1.5% to 2.5%, compared with its prior forecast of 1.5% to 4%. Earnings per share are now projected between $2.07 and $2.15, versus the earlier range of $2.00 to $2.15. Capital expenditures are expected to be between $45 million and $50 million, down from the prior outlook of $50 million to $55 million. Management said the revised guidance reflects continued consumer caution and softer sales trends expected in the third quarter as the company laps stronger prior-year comparisons. Executives also said the company expects modest inflation and relatively stable margins for the remainder of the fiscal year. Subsequent to the quarter, Natural Grocers received a $2 million insurance recovery related to business interruption stemming from a June 2025 cybersecurity incident that disrupted product distribution and contributed to temporary inventory shortages and lost sales. Management said the recovery, equivalent to approximately 6.5 cents per diluted share, has been incorporated into the company’s updated fiscal 2026 guidance. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Natural Grocers by Vitamin Cottage, Inc. 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Interested in Natural Grocers by Vitamin Cottage, Inc.? Here are five stocks we like better. Natural Grocers posted modest second-quarter gains, with net sales up 0.5% to $337.4 million and diluted EPS rising to $0.58, helped by disciplined expense control and a higher gross margin. Comparable sales increased just 0.5% as a larger basket size offset fewer transactions, while management said cautious, value-focused consumer behavior continued to pressure traffic among less loyal shoppers. The company completed a major ERP system upgrade and kept its store expansion plan intact, targeting six to eight new stores in fiscal 2026, while narrowing comparable-sales guidance and raising the low end of its full-year EPS outlook to $2.07-$2.15. Analysts' Top 3 Retail Picks Gearing Up for a Strong 2025 Natural Grocers by Vitamin Cottage (NYSE:NGVC) reported modest sales growth and higher earnings for its fiscal second quarter, as management said disciplined expense controls and store execution helped offset a more cautious consumer environment. On the company’s earnings call, Chairman and Co-President Kemper Isely said Natural Grocers “performed well in a challenging environment,” with diluted earnings per share rising 3.6% despite softer comparable sales growth against a difficult prior-year comparison. Comparable store sales increased 0.5% in the quarter, following an 8.9% comp in the same period last year. Isely said the company’s two-year comparable sales growth of 9.4% demonstrated “solid growth relative to the broader grocery retail industry.” → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? Management attributed the slower near-term sales trend to continued economic uncertainty and value-focused shopping behavior across grocery retail. Isely said Natural Grocers continues to position itself as “the value option in natural and organic grocery retail,” pointing to its “always affordable” pricing strategy and promotional campaigns featuring staple products and the company’s private-label Natural Grocers brand. Chief Financial Officer Richard Hallé said net sales increased 0.5% year over year to $337.4 million. Daily average comparable store sales also rose 0.5%, driven by a 1.6% increase in basket size, partly offset by a 1.1% decline in transaction count. → MercadoLibre Boldly Invests in Growth: Discount Deepens Hallé said the basket comp included a decline of less than half an item per basket. He noted that dairy, produce and meat delivered the strongest sales growth, describing them as some of the company’s most differentiated offerings. The company’s Natural Grocers brand accounted for 9.8% of total sales, up 120 basis points from a year earlier. Isely also highlighted continued momentum in the company’s {N}power Rewards program, with net sales penetration increasing 3 percentage points to 84%. → MP Materials Is Quietly Building a Rare Earth Powerhouse “{N}power remains an effective tool for optimizing promotional activity and strengthening customer engagement,” Isely said. Gross margin increased 10 basis points to 30.4%, which Hallé said was driven by lower store occupancy costs as a percentage of net sales and stable product margin, including inventory shrink. Store expenses decreased 1.6% from the prior-year quarter, primarily because of expense management. Administrative expenses rose 10%, which Hallé attributed mainly to higher technology expenses, including costs related to completion of the company’s enterprise resource planning system upgrade. Net income increased 2.5% to $13.4 million, while diluted earnings per share rose to $0.58 from the prior-year period. Adjusted EBITDA increased 4% to $27.4 million. Natural Grocers ended the quarter with $20.7 million in cash and cash equivalents, no outstanding borrowings and $67.6 million available under its revolving credit facility. During the first six months of fiscal 2026, the company generated $43.8 million in operating cash flow and invested $30.3 million in net capital expenditures, resulting in free cash flow of $13.5 million. Isely said the company completed a major upgrade to its enterprise resource planning system during the quarter, calling it “the most comprehensive systems implementation the company has undertaken to date.” He said the upgraded platform should improve operational efficiency, data visibility and scalability, including future functionality tied to analytics and business intelligence tools. In response to an analyst question about potential cost savings from the ERP system, Isely cautioned that near-term savings would likely be limited. “It’ll take a little while to get efficiencies from the new system and to work out bugs in the new system,” Isely said. “Any cost savings that we do see, we usually reinvest in competitive pricing.” The company opened one new store during the second quarter. After the quarter ended, it relocated one store and opened an additional store. Isely said Natural Grocers remains on track to open six to eight new stores in fiscal 2026 and is targeting a 4% to 5% annual new-store unit growth rate for the foreseeable future. Natural Grocers refined its fiscal 2026 outlook following the second-quarter results. The company now expects daily average comparable store sales growth of 1.5% to 2.5%, compared with its prior range of 1.5% to 4%. The company raised the low end of its diluted EPS outlook and now expects earnings of $2.07 to $2.15 per share, compared with the prior range of $2.00 to $2.15. Capital expenditures are now expected to be $45 million to $50 million, down from the previous range of $50 million to $55 million. New store openings: six to eight in fiscal 2026 Relocations or remodels: two to three existing stores Comparable sales growth: 1.5% to 2.5% Diluted EPS: $2.07 to $2.15 Capital expenditures: $45 million to $50 million Hallé said the company expects comparable sales growth of 2% to 4% in the second half of fiscal 2026, with results at the lower end of the range in the third quarter as the company cycles strong prior-year comparisons and slightly higher growth in the fourth quarter as comparisons moderate. He said the forecast reflects uncertainty in the consumer environment and assumes modest inflation in line with current trends. The company also said it received a $2 million insurance recovery after the quarter related to business interruption from a June 2025 cybersecurity incident that temporarily affected its main distributor’s ability to fulfill orders and distribute products, leading to product shortages and lost sales in June and July. Hallé said the recovery has been incorporated into the updated guidance. During the question-and-answer session, Isely said March was “a particularly difficult month,” while April was stronger. He said consumer enthusiasm was more robust a year earlier and noted that less loyal customers showed signs of pullback, while loyal customers continued shopping more consistently. Hallé said the company continued to see “very good growth” from its {N}power customer base, which now accounts for 84% of revenue. Isely added that Natural Grocers is starting a program aimed at increasing {N}power sales penetration and enrolling more customers who are not currently members. In closing remarks, Isely said the company remains focused on long-term value creation through store development, investments in people, processes and systems, and its positioning in high-quality natural and organic products supported by “always affordable prices.” Natural Grocers by Vitamin Cottage, Inc operates a chain of specialty grocery stores focused on natural and organic products. Founded in 1955 by Margaret and Philip Isely in Lakewood, Colorado, the company has built a reputation on strict product standards, including certified organic produce, non-GMO groceries and dietary supplements. Natural Grocers emphasizes whole, unprocessed foods and carries a broad assortment of private-label and national brands that meet its quality guidelines. The company's core offerings include fresh fruits and vegetables, bulk foods, vitamins, minerals and nutritional supplements, as well as natural body care and household items. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Natural Grocers by Vitamin Cottage Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.