Natural Grocers by Vitamin Cottage, Inc. closed out its third quarter with strong results. Net sales climbed 6.3% year over year to $328.7 million, while comparable store sales increased 7.4%. The retailer also reported a 26% jump in net income, reaching $11.6 million for the period ending June 30th. Adjusted EBITDA grew 10.1% to $24.4 million, and gross profit rose 8.8% to $7.9 million. Co-President Kemper Isely noted that the quarter’s performance outpaced expectations, reflecting strong customer response to the company’s value-driven organic and natural offerings.
“We believe that our value offering of high-quality, natural and organic products at Always Affordable prices resonates with consumers’ increasing prioritization of health and wellness, including food and nutrition,” Kemper Isely stated. “Strong sales combined with effective promotions and enhanced store productivity helped drive a 50 basis-point improvement in our operating margin, along with a 25% increase in diluted earnings per share.”
Kemper Isely addressed the cyberattack that disrupted supply from its primary distributor, United Natural Foods, Inc. (UNFI) resulting in a nearly 4 million dollar hit. “We estimate that the disruption to our operations adversely impacted our third quarter fiscal 2025 daily average comparable store sales by 1.0 to 1.5 percentage points, and diluted earnings per share by $0.04 to $0.05,” he said, noting that conditions have since improved. “We do not expect the disruption to materially impact our operations or financial performance in the future.”
Looking ahead, the company raised its full-year outlook, projecting stronger comparable sales and earnings per share. Natural Grocers now plans to open two stores during the remainder of FY25, compared with earlier expectations of three to four. Three store remodels are also scheduled before year-end.
On an August 8th earnings call, Isely emphasized the retailer’s continued growth. “To date, during fiscal 2025, we have opened two new stores, relocated two stores, and remodeled one store. Store unit growth and development is a company priority. I am pleased to announce that we are accelerating store unit growth and plan to open six to eight new stores in fiscal 2026,” he said.
He added, “With a consistent track record of strong financial and operating performance over the past several years, we are well positioned to execute this plan. We have already signed leases for five future new stores and are in negotiations on another five sites. Moreover, our new store pipeline includes approximately 75 vetted and approved communities in which we are actively pursuing real estate opportunities.”
Family-operated and known for its extensive private label assortment, Natural Grocers runs 169 stores across 21 states. Based in Lakewood, Colorado, the company ranks No. 93 on Progressive Grocer’s 2025 list of the top food and consumables retailers in North America and was also named one of the publication’s 10 Most Sustainable Grocers for 2025.
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