Natural Grocers shares dip after posting mixed Q4 results as top-line misses estimates

Published 20/11/2025, 22:22
 Natural Grocers shares dip after posting mixed Q4 results as top-line misses estimates

NEW YORK - Natural Grocers by Vitamin Cottage, Inc. (NYSE:NGVC) reported fourth-quarter earnings that exceeded analyst expectations on Thursday, though revenue fell short of estimates, sending shares down 1.2% in trading.

The natural and organic grocery retailer posted adjusted earnings per share of $0.51 for the fourth quarter, surpassing the analyst consensus of $0.45. However, quarterly revenue of $336.1 million missed the consensus estimate of $350.98 million, despite representing a 4.2% increase YoY.

Daily average comparable store sales rose 4.2% during the quarter, driven by a 2.4% increase in transaction count and a 1.8% increase in transaction size. Net income jumped 31% to $11.8 million compared to the same period last year.

"We are pleased with our fourth quarter performance, with sales in-line with guidance and diluted earnings per share exceeding our outlook, resulting in record sales and earnings for fiscal year 2025," said Kemper Isely, Co-President of Natural Grocers.

The company announced a 25% increase in its quarterly cash dividend to $0.15 per share, payable on December 10 to shareholders of record as of December 1.

For fiscal 2026, Natural Grocers provided guidance of $2.00-$2.15 earnings per share, above the analyst consensus of $1.95. The company plans to open six to eight new stores in the coming fiscal year.

Adjusted EBITDA for the quarter increased 7.7% to $24.4 million compared to the same period last year, while gross margin decreased slightly to 29.5% from 29.6% a year earlier.

For the full fiscal year 2025, Natural Grocers reported a 7.2% increase in net sales to $1.33 billion, with comparable store sales growth of 7.3%. The company marked its 22nd consecutive year of positive comparable store sales growth.

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