Natural Grocers by Vitamin Cottage (NGVC) delivered a solidQQ2 2024 with pronounced top-line strength and margin discipline that supported a meaningful earnings uplift. Net sales reached $308.1 million, up 8.8% year over year, while daily average comparable store sales rose 7.5% and the 2-year comp improved to 10.2%, underscoring durable demand for its differentiated natural and organic offering. The company attributed much of its momentum to three drivers: a differentiated business model anchored in high product standards and affordable pricing with science-based nutrition education; aggressive yet targeted customer engagement via the NPower rewards program; and productivity initiatives that enhanced in-store efficiency. These factors contributed to a 20 basis point uplift in gross margin to 29.3% and a 34.6% year-over-year increase in diluted earnings per share to $0.35, supported by Adjusted EBITDA of $19.7 million.
Management raised fiscal 2024 guidance on topline growth, store expansion, and earnings, signaling confidence in continued demand and operating leverage. The updated plan contemplates opening 4–6 new stores, relocating/remodeling 4–6 more, achieving daily average comparable store sales growth of 4–6%, and delivering diluted EPS between $1.08 and $1.18, with capital expenditures of $30–$39 million to support growth. While the near-term outlook is constructive, management noted gross margins are expected to be largely flat in H2 as pricing/promotional benefits normalize and inflation moderates. Investors should monitor store-level execution, loyalty program retention, and competitive dynamics in the fragmented natural-foods segment as key drivers of continued profitability.