Natural Grocers Q2 sales edge up; trims FY same-store sales view but tightens EPS view

Natural Grocers by Vitamin Cottage

07/05/2026 21:59

Overview

US natural and organic grocer's fiscal Q2 sales rose 0.5% yr/yr, net income up 2.5%

Adjusted EBITDA for fiscal Q2 grew 4.0%, driven by disciplined expense management

Company refined fiscal 2026 outlook, narrowing comparable sales growth and raising EPS guidance

Outlook

Company narrows fiscal 2026 daily average comparable store sales growth outlook to 1.5%-2.5%

Company raises lower end of fiscal 2026 diluted EPS guidance to $2.07-$2.15

Company lowers fiscal 2026 capital expenditures forecast to $45-50 mln

Result Drivers

COMPARABLE STORE SALES - Modest increase in comparable store sales and higher average transaction size contributed to sales growth

EXPENSE MANAGEMENT - Lower store expenses and reduced store occupancy costs supported margin and earnings growth

HIGHER ADMINISTRATIVE COSTS - Administrative expenses rose, mainly due to higher technology spending

Company press release: ID:nPn496BQYa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
$337.38 mln
Q2 EPS
$0.58
Q2 Net Income
$13.43 mln
Q2 Adjusted EBITDA
$27.40 mln
Q2 Gross Margin
30.40%
Q2 Gross Profit
$102.44 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"

Wall Street's median 12-month price target for Natural Grocers by Vitamin Cottage Inc is $40.00, about 47.5% above its May 6 closing price of $27.11

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)