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Net Sales: Increased 4.2% from the prior year period to $336.1 million.
Daily Average Comparable Store Sales: Increased 4.2%, and 11.3% on a two-year basis.
Operating Margin: Improved by 90 basis points for the fourth quarter.
Gross Margin: Decreased 10 basis points to 29.5%.
Net Income: Increased 31% to $11.8 million.
Diluted Earnings Per Share: Reached $0.51 for the quarter and $2 for fiscal year 2025.
Adjusted EBITDA: Increased 7.7% to $24.4 million for the quarter and 17.5% to $97.9 million for the fiscal year.
Cash and Cash Equivalents: $17.1 million at the end of the fourth quarter.
Free Cash Flow: $24.3 million for fiscal 2025.
New Store Openings: Two new stores opened, two relocated, and one remodeled in fiscal 2025.
House Branded Products Sales: Accounted for 8.8% of total sales, up from 8.4% a year ago.
Quarterly Cash Dividend: Increased by 25% to $0.15 per common share.
Release Date: November 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Fourth-quarter sales were in line with guidance, and diluted earnings per share exceeded expectations.
Fiscal 2025 marked the 22nd consecutive year of positive comparable store sales growth.
The {N}power rewards program maintained a strong net sales penetration of 82%, enhancing customer engagement.
Natural Grocers branded products saw growth, accounting for 8.8% of total sales, up from 8.4% the previous year.
The company plans to open 6 to 8 new stores in fiscal 2026, indicating confidence in growth and expansion.
The UNFI cybersecurity incident in June 2025 impacted sales due to constrained product distribution.
Economic uncertainty led to a shift in consumer behavior towards more cautious retail spending.
Gross margin decreased by 10 basis points to 29.5% due to lower product margins.
There was a modest decline in transactions using SNAP EBT, although it was immaterial to overall sales.
The company anticipates sales comps to be at the low end of the outlook range in the first half of fiscal 2026 due to economic uncertainty.
Q: Given the increased price sensitivity in the consumer environment and the company’s 8.8% owned brands penetration, is this a good time to increase that number and make customers more aware of the value in the Natural Grocers brands? A: Yes, we are marketing our own brand extensively and promoting our bulk items aggressively. Our goal is to increase penetration by 1 percentage point per year, aiming for 10.8% or even 11% in two years. – Kemper Isely, Co-President
Story Continues
Q: How do you respond to the perception that traditional supermarkets are catching up by offering similar natural and organic products at lower prices? A: We’ve differentiated ourselves with an authentic brand and story that resonates with consumers, unlike conventional supermarkets that sell products solely because they sell. Our commitment to quality and ethics keeps our customers loyal and helps us grow. – Kemper Isely, Co-President
Q: What specific factors in the business indicate that economic challenges are affecting growth? A: Peripheral customers have pulled back, leading to cautious growth expectations. However, new marketing initiatives are expected to gain traction soon, potentially increasing growth. – Kemper Isely, Co-President
Q: What is your outlook on free cash flow for fiscal 2026? A: We expect positive free cash flow next year despite increased CapEx for store openings, relocations, and remodels. We are also strategically purchasing some of our buildings. – Richard Halle, CFO
Q: How is the current economic environment impacting consumer behavior and your business strategy? A: Economic uncertainty is affecting consumer sentiment, with a pullback by lower middle-income consumers. We are focusing on our differentiation and value proposition, emphasizing always affordable prices and high product standards. – Richard Halle, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
