NGVC Sees Record Earnings in Q2

Natural Grocers reported a record-breaking second quarter, with net sales up 9% year-over-year to $335.8 million. CEO Kemper Isely credits the growth to continued consumer demand for healthy food and strong performance from stores five years and older. Daily average comparable sales rose 8.9%, driven by differentiated offerings in humanely sourced meat, organic produce, and 100% pasture-raised dairy. Free-range eggs also contributed to category growth.

To support affordability, the company offered {N}power loyalty members discounted prices—starting at $2.29 per dozen—on four types of premium eggs in early June, in partnership with Contented Hen. “We believe there is a continuing trend in consumer prioritization of health and wellness, including a heightened focus on food and nutrition, and that we are well positioned to capitalize on this dynamic,” Isely said.

The grocer marked its ninth consecutive quarter of positive traffic growth, with transactions up 5.9% and average basket size increasing 2.8%. “Our customers have historically been resilient during periods of economic uncertainty,” Isely said. “We have not observed any indicators of softer demand for our products.”

With continued momentum, Natural Grocers raised its fiscal 2025 outlook:

• Comparable sales growth: Now expected at 6.5%–7.5% (up from 5%–7%)
• Earnings per share: Updated to $1.78–$1.86 (previously $1.57–$1.65)

Additional highlights:

• {N}power net sales penetration surged 78% year-over-year
• Private-label products made up 8.6% of total sales, slightly up from last year

A recent U.S. Grocery Shopper Trends 2025 report from FMI confirms the broader trend: health and nutrition continue to guide how Americans shop, cook, and spend.