Natural Grocers Q1 EPS Rises to $0.49 on 14% Net Income Growth, $335.6M Sales
Natural Grocers reported Q1 EPS of $0.49 versus $0.43 a year ago on net sales of $335.6 million, a 1.6% increase while net income rose 14% to $11.3 million. Cost discipline cut store expenses by 0.7% and administrative expenses by 5.9%, driving operating income up 9.7% to $14.6 million.
1. Q1 Financial Results
For the fiscal quarter ended December 31, 2025, Natural Grocers delivered earnings per share of $0.49, up from $0.43 in the prior year, on net sales of $335.6 million, a 1.6% gain. Net income rose 14% to $11.3 million, while gross profit remained flat at $98.9 million.
2. Operational Efficiencies and Margins
Gross margin contracted by 40 basis points to 29.5% due to increased inventory shrink, but store expenses declined 0.7% to $73 million and administrative costs fell 5.9% to $10.8 million. These savings lifted operating income by 9.7% to $14.6 million, expanding the operating margin to 4.4%, and supported a 3.1% rise in adjusted EBITDA to $23.5 million.
3. Comparable Store Sales Growth
Daily average comparable store sales rose 1.7%, driven by a 1% increase in transaction count and a 0.7% increase in transaction size. Revenue gains from new store openings totaled $2.4 million, partially offset by a $2.8 million decline from closed locations.
4. Outlook and Guidance
Management reaffirmed full-year guidance calling for 1.5%–4% comparable store sales growth, earnings per share of $2.00–$2.15, capital expenditures of $50 million–$55 million, and the opening of six to eight new stores with two to three relocations or remodels for fiscal 2026.